| All fixed assets are initially recorded at cost. The company's property, classified as buildings, is held for use in its principal activity and is stated in the balance sheet under the historic cost model. This model requires assets to be stated at cost less any accumulated impairment losses.
No depreciation is charged on buildings as their residual value is estimated to be equal to or greater than their carrying amount. If the carrying value of the buildings were to be reviewed, any necessary amendments would be made in accordance with FRS 102. |