17. Property, plant and equipment

Recognition and measurement

We measure property, plant and equipment at cost less accumulated depreciation and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset.

An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition. 

Depreciation

Depreciation of property, plant and equipment is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

• Buildings: 30 years

• Leasehold improvements: term of the lease unless the useful life is shorter

• Furniture and fittings: 10 years

• Office and computer equipment: 5 years

• Motor vehicles: 5 years

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Disposal

Gains and losses on disposals are determined by comparing the net proceeds with the carrying amount and are recognised within ‘Other expenses’ in the income statement.

Property, plant and equipment movement schedule