Tangible fixed assets held for the company’s own use are stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is provided at rates calculated to write down the cost of fixed assets, less their estimated residual value, over their expected useful lives. The rates generally applicable are shown below.
Properties are subject to a policy of regular maintenance or repair and the residual value at the end of the remaining useful life to the company will be such that any diminution in value would be insignificant.
Assets held under finance leases are depreciated in the same way as owned assets.
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 an 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.
The depreciation rates generally applicable are: