Tesco 2014 Annual Report Download - page 94

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Note 11 Property, plant and equipment
Land and
buildings
£m
Other(a)
£m
Total
£m
Cost
At 23 February 2013 24,817 10,826 35,643
Foreign currency translation (1,131) (470) (1,601)
Additions(b) 1,492 955 2,447
Acquired through business combinations 9 6 15
Reclassification 1,875 27 1,902
Classified as held for sale (115) –(115)
Disposals (239) (133) (372)
Transfer to disposal group classified as held for sale (974) (360) (1,334)
At 22 February 2014 25,734 10,851 36,585
Accumulated depreciation and impairment losses
At 23 February 2013 3,961 6,812 10,773
Foreign currency translation (220) (267) (487)
Charge for the year 466 846 1, 312
Impairment losses 814 52 866
Reversal of impairment losses (152) (2) (154)
Reclassification 282 1283
Classified as held for sale 2 1 3
Disposals (139) (117) (256)
Transfer to disposal group classified as held for sale (29) (216) (245)
At 22 February 2014 4,985 7,110 12,095
Net carrying value(c)(d)
At 22 February 2014 20,749 3,741 24,490
At 23 February 2013 20,856 4,014 24,870
Construction in progress included above(e)
At 22 February 2014 612 80 692
At 23 February 2013 584 96 680
(a) Other assets consist of plant, equipment, fixtures and fittings and motor vehicles.
(b) Includes £79m (2013: £123m) in respect of interest capitalised, principally relating to land and building assets. The capitalisation rate used to determine the amount of finance
costs capitalised during the financial year was 5.1% (2013: 5.1%). Interest capitalised is deducted in determining taxable profit in the financial year in which it is incurred.
(c) Net carrying value includes:
(i) Capitalised interest of £1,208m (2013: £1,195m).
(ii) Assets held under finance leases which are analysed below:
2014 2013
Land and
buildings
£m
Other(a)
£m
Land and
buildings
£m
Other(a)
£m
Cost 151 558 157 559
Accumulated depreciation and impairment losses (50) (529) (45) (514)
Net carrying value 101 29 112 45
These assets are pledged as security for the finance lease liabilities.
(d) The net carrying value of land and buildings comprises:
2014
£m
2013
£m
Freehold 18,430 18,335
Long leasehold – 50 years or more 662 623
Short leasehold – less than 50 years 1,657 1,898
Net carrying value 20,749 20,856
(e) Construction in progress does not include land.
The Group continually assesses the level of services provided to tenants of its managed investment properties in accordance with IAS 40. During the year,
it was concluded that the level of services provided to tenants of some malls operated by the Group are no longer considered insignificant and as a result a
number of malls with a net book value of £1,623m have been reclassified from investment property to property, plant and equipment.
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 91