Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - No depreciation is provided
Short leasehold - Straight line over 20 years
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and impairment losses.
The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying value of the asset, and is credited or charged to the profit and loss.
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 company has chosen to measure investment properties rented to other group entities under the cost model as permitted by paragraph 16.4A(b) of FRS102.