Aircrafts are stated at cost less accumulated depreciation and any accumulated impairment losses.
Aircraft are stated at cost less accumulated depreciation and any impairment losses.
Depreciation is charged on a straight-line basis over 25 years, reflecting the estimated useful economic life of the aircraft. A residual value of 5% of the original cost is assumed. The residual value and useful life are both reviewed annually and adjusted prospectively where necessary to reflect operational usage, condition, and prevailing market factors.
Where component accounting is applicable, significant parts of the aircraft (such as engines, interiors, or avionics) that have materially different useful lives are depreciated separately over their respective useful lives. These components are identified and accounted for individually where such treatment provides more reliable and relevant financial information.