| 2.12 | Property, plant and equipment |
Property, plant and equipment items are recorded at their historic cost, less accumulated depreciation and impairment losses. The cost includes both disbursements directly attributable to the asset acquisition or construction, as well as the financing interest directly related to certain qualified assets, which are capitalized during the construction or acquisition period, as long as these assets qualify for these purposes considering the period necessary to complete and prepare the assets to be operative. Disbursements after the purchase or acquisition are only capitalized when it is likely that the future economic benefits associated to the investment will flow to the Company, and costs may be reasonably measured. Subsequent disbursements related to repairs and maintenance are recorded as expenses when incurred.
Depreciation of property, plant and equipment items, including assets under financial lease, is calculated on a straight line basis over the estimated useful lives of property, plant and equipment items, taking into account their estimated residual value. When an asset is formed by significant components with different useful lives, each part is separately depreciated. Property, plant and equipment useful lives and residual values estimates are reviewed and adjusted at each financial statement closing date, if necessary.
The estimated useful lives of property, plant and equipment are detailed as follows:
| Type of Assets | | Number of years |
| Land | | Indefinite |
| Buildings and Constructions | | 20 to 60 |
| Machinery and equipment | | 10 to 25 |
| Fumiture and accesories | | 5 to 10 |
| Other equipment (coolers and mayolicas) | | 5 to 8 |
| Glass containers, and plastic containers | | 3 to 12 |
| Vines in production | | 30 |
Gains and losses resulting from the sale of properties, plants and equipment are calculated comparing their book values against the related sales proceeds and are included in the Consolidated Statement of Income.
Biological assets held by Viña San Pedro Tarapacá S.A. (VSPT) and its subsidiaries consist of vines in formation and in production. Harvested grapes are used for subsequent wine production.
Vines under production are valued at the historic cost, less depreciation and any impairment loss.
Depreciation of vines in production is recorded using the straight-line method over the 30-year estimated average production life, which is periodically assessed. Vines in formation are not depreciated until they start producing.
Costs incurred in acquiring and planting new vines are capitalized.
When the carrying amount of a property, plant and equipment item exceeds its recoverable value, it is immediately written down to its recoverable amount (See Note 2, 2.17).
