Tangible fixed assets are stated at cost less depreciation.
The leasehold property is the subject of a 999 year lease. The directors do not consider that depreciating the leasehold cost is justified, as the commercial value of the long leasehold interest is greater than the cost to the company. The lease is for a period of 999 years from 1995.
Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases: