Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairement losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciate is provided on the following basis: