No depreciation is provided on the freehold property because in the opinion of the directors the residual value is not materially different to the carrying value in the accounts. Depreciation on the property would be considered immaterial. Annual impairment reviews are carried out to substantiate the value held in the accounts.
The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each period. The effect of any change in accounted for prospectively.