Barclays 2011 Annual Report Download - page 242

Notes to the financial statements
For the year ended 31 December 2011 continued
Fixed assets and investments
This section details the Group’s tangible and intangible assets, property plant and equipment and
investments, which it utilises to generate profit for the business.
25 Property, plant and equipment
Accounting for property, plant and equipment
The Group applies IAS 16 Property Plant and Equipment and IAS 40 Investment Properties.
Property, plant and equipment is stated at cost, which includes direct and incremental acquisition costs less accumulated depreciation and
provisions for impairment, if required. Subsequent costs are capitalised if these result in the enhancement to the asset.
Depreciation is provided on the depreciable amount of items of property, plant and equipment on a straight-line basis over their estimated useful
economic lives. Depreciation rates, methods and the residual values underlying the calculation of depreciation of items of property, plant and
equipment are kept under review to take account of any change in circumstances. Following a review in 2011, the depreciation rates for certain
categories of fixed assets were revised to reflect their currently expected useful lives. The impact of the change was not material. The Group uses
the following annual rates in calculating depreciation:
Annual rates in calculating depreciation Depreciation rate
Freehold land Not depreciated
Freehold buildings and long-leasehold property (more than 50 years to run) 2-3.3%
Leasehold property over the remaining life of the lease (less than 50 years to run) Over the remaining life of the lease
Costs of adaptation of freehold and leasehold propertya6-10%
Equipment installed in freehold and leasehold propertya6-10%
Computers and similar equipment 17-33%
Fixtures and fittings and other equipment 9-20%
Investment property
The Group initially recognises investment property at cost, and subsequently at their fair value at each balance sheet date reflecting market
conditions at the reporting date. Gains and losses on remeasurement are included in the income statement.
Note
a Where leasehold property has a remaining useful life of less than 15 years, costs of adaptation and installed equipment are depreciated over the remaining life of the lease.
240 Barclays PLC Annual Report 2011 www.barclays.com/annualreport