Fixed assets consist of the freehold property, Sycamore Court, which was acquired by the company on the 16th September 2005. The directors consider the useful economic life of the property to be at least 50 years. In accordance with FRS 102 depreciation is ordinarily recognised so as to write off the costs of a property, less its residual value, over its useful economic life. The directors have assessed that the residual value of the property, based on the current market conditions, is likely to be sufficiently high such that depreciation is immaterial to be provided for within these financial statements.