Barclays 2014 Annual Report Download - page 301

barclays.com/annualreport Barclays PLC Annual Report 2014 I 299
Notes to the financial statements
23 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. The Group uses the following annual rates in calculating
depreciation:
Annual rates in calculating depreciation Depreciation rate
Freehold land
Freehold buildings and long-leasehold property (more than 50 years to run)
Leasehold property over the remaining life of the lease (less than 50 years to run)
Costs of adaptation of freehold and leasehold property
Equipment installed in freehold and leasehold property
Computers and similar equipment
Fixtures and fittings and other equipment
Not depreciated
2-3.3%
Over the remaining life of the lease
6-10%
6-10%
17-33%
9-20%
Where leasehold property has a remaining useful life of less than 17 years, costs of adaptation and installed equipment are depreciated over the
remaining life of the lease.
Investment property
The Group initially recognises investment property at cost, and subsequently at fair value reflecting market conditions at the reporting date.
Gains and losses on re-measurement are included in the income statement.
Investment
property
£m
Property
£m
Equipment
£m
Leased
assets
£m
Total
£m
Cost
As at 1 January 2014 451 3,924 4,552 10 8,937
Additions and disposals (160) 174 7 – 21
Change in fair value of investment properties (1) – – – (1)
Exchange and other movements (83) (44) (209) – (336)
As at 31 December 2014 207 4,054 4,350 10 8,621
Accumulated depreciation and impairment
As at 1 January 2014 – (1,513) (3,201) (7) (4,721)
Depreciation charge – (184) (399) (2) (585)
Disposals – 34 271 – 305
Exchange and other movements – (6) 172 – 166
As at 31 December 2014 – (1,669) (3,157) (9) (4,835)
Net book value 207 2,385 1,193 1 3,786
Cost
As at 1 January 2013 1,686 4,030 4,794 14 10,524
Additions and disposals (1,052) 21 88 (4) (947)
Change in fair value of investment properties 41 – – – 41
Exchange and other movements (224) (127) (330) – (681)
As at 31 December 2013 451 3,924 4,552 10 8,937
Accumulated depreciation and impairment
As at 1 January 2013 – (1,414) (3,350) (6) (4,770)
Depreciation charge – (220) (426) (1) (647)
Disposals – 113 282 – 395
Exchange and other movements – 8 293 – 301
As at 31 December 2013 – (1,513) (3,201) (7) (4,721)
Net book value 451 2,411 1,351 3 4,216
Non-current assets and other investments
The notes included in this section focus on the Group’s non-current tangible and intangible assets and property plant
and equipment, which provide long-term future economic benefits.
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