Tesco 2009 Annual Report Download - page 93

Download and view the complete annual report

Please find page 93 of the 2009 Tesco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

91
FINANCIAL STATEMENTS
Tesco PLC Annual Report and Financial Statements 2009
To find out more go to
www.tesco.com/annualreport09
Note 11 Property, plant and equipment continued
The following amounts have been (charged)/credited to operating costs in the Group Income Statement during the current and prior year:
2009 2008
£m £m
Impairment losses
UK (21) (48)
Rest of Europe (31) (25)
Asia (4) (4)
(56) (77)
Reversal of impairment losses
UK 21 48
Rest of Europe 50 36
Asia 17 3
88 87
Net reversal of impairment losses 32 10
The impairment losses relate to stores whose recoverable amounts (either value in use or fair value less costs to sell) do not exceed the asset carrying
values. In all cases, impairment losses arose due to stores performing below forecasted trading levels.
The reversal of previous impairment losses arose principally due to improvements in stores’ performances over the last year which increased the net
present value of future cash flows.
Note 12 Investment property
2009 2008
£m £m
Cost
At beginning of year 1,190 906
Foreign currency translation 24 93
Additions 114 50
Acquisitions through business combinations 86 –
Transfers 260 144
Classified as held for sale (10) –
Disposals (4) (3)
At end of year 1,660 1,190
Accumulated depreciation and impairment losses
At beginning of year 78 50
Foreign currency translation 3 7
Charge for the period 25 16
Transfers 5 5
Impairment losses 10 –
At end of year 121 78
Net carrying value 1,539 1,112
The net carrying value at 24 February 2007 was £856m.
The following amounts have been charged to operating costs in the Group Income Statement during the current and prior year:
2009 2008
£m £m
Impairment losses
Rest of Europe (10) –
Net impairment losses (10) –
The impairment losses relate to malls whose recoverable amounts (either value in use or fair value less costs to sell) do not exceed the asset carrying
values. In all cases, impairment losses arose due to the malls performing below forecasted trading levels.
The estimated fair value of the Group’s investment property is £3,196m (2008 – £2,265m). This fair value has been determined by applying an
appropriate rental yield to the rentals earned by the investment property. A valuation has not been performed by an independent valuer.