| Tangible fixed assets are stated at cost or valuation less depreciation.
At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Plant and machinery has been depreciated to its estimated residual value. The residual value represents the fair value of the asset in the event of disposal at an arms length transaction. The previous rate of depreciation was considered to be too aggressive. No further depreciation shall be charged on those assets, however it shall be subject to an annual impairment review. The change in estimate has been applied prospectively.
Depreciation is provided on all tangible fixed assets as follows: |