Property, plant and equipment
An item of property, plant and equipment is carried at historical cost less accumulated depreciation and impairment. Costs relating to the day-to-day servicing of the item are recognized in the income statement as incurred.
A pro rata straight-line depreciation method is used to reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity. However, land is not depreciated. The residual value and the useful life of an asset is reviewed each financial year-end for possible impairment.
Depreciation is charged to the income statement on the following basis:
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• Buildings |
10 years |
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• Equipment |
3 years |
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• Hardware |
3 years |
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• Furniture |
5 years |
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• Equipment under leasing |
The shorter of the useful life or the minimum leasing term |
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• Leasehold improvements |
The shorter of the useful life or the minimum leasing term | |