Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. 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:

Stocks, which comprise land held for development and work in progress are valued at the lower of direct cost and net realisable value. Where applicable net realisable value is estimated by the directors as the price at which the asset could be sold on the open market for existing use less the related costs of marketing and selling. In respect of work in progress direct cost includes land, materials and other development costs but excludes central overheads and interest.