EasyJet 2013 Annual Report Download - page 103

www.easyJet.com
$FFRXQWVRWKHULQIRUPDWLRQ
&NNCVHKK@MCNSGDQHMS@MFHAKD@RRDSR
Goodwill is stated at cost less any accumulated impairment losses. It has an indefinite expected useful life and is tested
for impairment at least annually or where there is any indication of impairment.
Landing rights are stated at cost less any accumulated impairment losses. They are considered to have an indefinite
useful life as they will remain available for use for the foreseeable future provided minimum utilisation requirements
are observed, and are tested for impairment at least annually or where there is any indication of impairment.
Other intangible assets are stated at cost less accumulated amortisation, which is calculated to write off their cost, less
estimated residual value, on a straight line basis over their expected useful lives. Expected useful lives and residual values
are reviewed annually.
Expected useful life
Computer software 3 years
Contractual rights Over the length of the related contracts
/QNODQSXOK@MS@MCDPTHOLDMS
Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is calculated to write off the
cost, less estimated residual value, of assets, on a straight line basis over their expected useful lives. Expected useful lives
are reviewed annually.
Expected useful life
Aircraft 23 years
Aircraft spares 14 years
Aircraft – prepaid maintenance 3-10 years
Leasehold improvements 5-10 years or the length of lease if shorter
Fixtures, fittings and equipment 3 years or length of lease of property where equipment is used if shorter
Computer hardware 5 years
Aircraft held under finance leases are depreciated over the shorter of the lease term and their expected useful lives,
as shown above.
Residual values, where applicable, are reviewed annually against prevailing market rates at the balance sheet date
for equivalently aged assets and depreciation rates adjusted accordingly on a prospective basis. The carrying value is
reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable.
An element of the cost of a new aircraft is attributed on acquisition to prepaid maintenance and is depreciated
over a period ranging from three to ten years from the date of manufacture. Subsequent costs incurred which lend
enhancement to future periods, such as long-term scheduled maintenance and major overhaul of aircraft and engines,
are capitalised and depreciated over the length of period benefiting from these enhancements. All other maintenance
costs are charged to the income statement as incurred.
Pre-delivery and option payments made in respect of aircraft are recorded in property, plant and equipment at cost.
These amounts are not amortised.
Gains and losses on disposals (other than aircraft sale and leaseback transactions) are determined by comparing the
net proceeds with the carrying amount and are recognised in the income statement.
(LO@HQLDMSNEMNMBTQQDMS@RRDSR
An impairment loss is recognised to the extent that the carrying value exceeds the higher of the asset’s fair value
less cost to sell and its value in use. Impairment losses recognised on goodwill are not reversed. Impairment losses
recognised on assets other than goodwill are only reversed where changes in the estimates used result in an increase
in recoverable amount.

101
www.easyJet.com
Accounts & other information