Aviva 2013 Annual Report Download - page 165

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
163
Notes to the consolidated financial statements continued
21 – Property and equipment
This note analyses our property and equipment, which are primarily properties occupied by Group companies and computer
equipment.
Properties
under
construction
£m
Owner-
occupied
properties
£m
Motor
vehicles
£m
Computer
equipment
£m
Other
assets
£m
Total
£m
Cost or valuation
At 1 January 2012 175 215 7 630 247 1,274
Additions 16 171 — 27 20 234
Disposals — (13) (4) (46) (41) (104)
Transfers to investment property (note 22) (111) (32) — — — (143)
Fair value losses (6) (3) — — — (9)
Transfer to intangible assets (note 18) — — — (3) — (3)
Foreign exchange rate movements — (1) — — (7) (8)
At 31 December 2012 74 337 3 608 219 1,241
Additions — 12 — 9 9 30
Disposals1 (44) (96) — (19) (61) (220)
Transfers (to)
/
from investment property (note 22) (25) 1 — — — (24)
Fair value gains/(losses) 3 (2) — — — 1
Foreign exchange rate movements — 6 — (2) (1) 3
At 31 December 2013 8 258 3 596 166 1,031
Depreciation and impairment
At 1 January 2012 — — (5) (567) (192) (764)
Charge for the year — — 1 (28) (19) (46)
Disposals — — 2 38 20 60
Impairment charge (see below) — (91) — (5) (10) (106)
Foreign exchange rate movements — (1) — 3 6 8
At 31 December 2012 — (92) (2) (559) (195) (848)
Charge for the year — — — (22) (12) (34)
Disposals1 — 91 — 12 59 162
Foreign exchange rate movements — — — — 2 2
At 31 December 2013 — (1) (2) (569) (146) (718)
Carrying amount
At 31 December 2012 74 245 1 49 24 393
At 31 December 2013 8 257 1 27 20 313
Less: Assets classified as held for sale — — — — — —
8 257 1 27 20 313
1 Disposals include property and equipment sold as part of the disposal of the US Life business in 2013.
Fair value losses on owner-occupied properties of £2 million (2012: £3 million losses) have been taken to other comprehensive
income.
Owner-occupied properties are stated at their revalued amounts, as assessed by qualified external valuers. These values are
assessed in accordance with the relevant parts of the current RICS Appraisal and Valuation Standards in the UK, and with current
local valuation practices in other countries. This assessment is in accordance with UK Valuations Standards (“Red book”), and is the
estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an
arm’s-length transaction, after proper marketing wherein the parties had acted knowledgeably, prudently and without compulsion,
on the basis of the highest and best use of asset that is physically possible, legally permissible and financially feasible. The valuation
assessment is in line with guidance from the International Valuation Standards Committee and the requirements of IAS 16,
Property, Plant and Equipment.
Similar considerations apply to properties under construction, where an estimate is made of valuation when complete, adjusted
for anticipated costs to completion, profit and risk, reflecting market conditions at the valuation date.
In 2012, the £106 million impairment loss charged to the income statement mainly related to Aviva USA’s property and
equipment, the carrying value of which was reduced to nil.
If owner-occupied properties were stated on a historical cost basis, the carrying amount would be £255 million (2012:
£275 million).
The Group has no material finance leases for property and equipment.