Ryanair 2004 Annual Report Download - page 28

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Tangible fixed assets are stated at cost less accumulated
d e p reciation and provisions for impairments, if any.
Depreciation is calculated so as to write off the cost, less
estimated residual value of assets, on a straight line basis
over their expected useful lives at the annual rates in the
table above.
Aircraft are depreciated over their estimated useful lives to
estimated residual values as detailed in the table above.
An element of the cost of an acquired aircraft is attributed
on acquisition to its se rv i c e potential reflecting the
maintenance condition of its engines and airframe. This cost,
which can equate to a substantial element of the total
aircraft cost, is amortised over the shorter of the period to
the next check (usually between 8 and 12 years for Boeing
737-800 “next generation” aircraft ) or the remaining life of
the aircraft.
The costs of subsequent major airframe and engine
maintenance checks are capitalised and amortised over the
shorter of the period to the next check or the remaining life
of the aircraft.
Advance and option payments made in respect of aircraft
purchase commitments and options are recorded at cost and
separately disclosed as part of tangible fixed assets. On
a cquisition of the re l a ted airc ra ft these pay m e n ts are
included as part of the cost of aircraft and are depreciated
from that date.
Statement of Cash Flows
Cash represents cash held at bank and available on demand,
offset by bank overdrafts.
Liquid resources are current asset investments (other than
cash) that are readily convertible into known amounts of
cash. Liquid resources include investments in commercial
paper, certificates of deposit and cash deposits of more than
oneday, butless thanone year.
Financial Fixed Assets
Financial fixed assets are shown at cost less provisions for
impairments if any.
Inventories
Inventories, principally representing rotable aircraft spares,
are stated at the lower of cost and net realisable value. Cost
is based on invoiced price on an average basis for all stock
categories. Net realisable value is calculated as estimated
selling price net of estimated selling costs.
(Continued)
Statement of Accounting Policies
28
A N N U A L R E P O RT & F I N A N C I A L S T A T E M E N T S 2 0 0 4
Tangible Fixed Assets and Depreciation
AIRCRAFT TYPE NO OF OWNED AIRCRAFT USEFUL LIFE RESIDUAL VALUE
Boeing 737-200 15 (operational) 20 years from date of manufacture 500,000
6 (retired) 20 years from date of manufacture 250,000
Boeing 737-800 41 (alloperational) 23 years from date of manufacture 15% of original
Plant and equipment 20 - 33.3%
Fixtures and fittings 20%
Motor vehicles 33.3%
Buildings 5%
RATES OF DEPRECIATION