Unilever 2002 Annual Report Download - page 84

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Unilever Annual Report & Accounts and Form 20-F 2002
Notes to the consolidated accounts 81
Unilever Group
Financial Statements
10 Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation.
Depreciation is provided on a straight-line basis at percentages of
cost based on the expected average useful lives of the assets.
Estimated useful lives by major class of assets are as follows:
Freehold buildings 33-40 years
(no depreciation on freehold land)
Leasehold land and buildings *33-40 years
Plant and equipment 3-20 years
Motor vehicles 3-6 years
*or life of lease if less than 33 years
Tangible fixed assets are subject to review for impairment in
accordance with United Kingdom FRS 11 and United States
SFAS 144. Any impairment in the value of such fixed assets
is charged to the profit and loss account as it arises.
million million
2002 2001
At cost less depreciation:
Land and buildings (a) 2 622 3 106
Plant and machinery 4 814 6 134
Total 7 436 9 240
(a) includes: freehold land 282 383
leasehold land
(mainly long-term leases) 63 84
Approximate current replacement cost
of tangible fixed assets net of
accumulated current cost depreciation 8 535 10 529
On a current replacement cost basis the
depreciation charge to the profit and
loss account would have been
increased by (220) (248)
Commitments for capital expenditure
at 31 December 244 298
million million
Movements during 2002 Land and Plant and
buildings machinery
Gross
1 January 4 570 13 597
Currency retranslation (556) (1 501)
Capital expenditure 182 1 116
Disposals (255) (918)
Acquisitions/disposals of group companies (176) (761)
Other adjustments 85 (85)
31 December 3 850 11 448
Depreciation
1 January (1 464) (7 463)
Currency retranslation 184 855
Disposals 136 696
Acquisitions/disposals of group companies 81 450
Charged to profit and loss account (b) (124) (1 213)
Other adjustments (41) 41
31 December (1 228) (6 634)
Net book value 31 December 2 622 4 814
Includes payments on account and
assets in course of construction 64 495
(b) Including a charge of 300 million in respect of certain fixed
assets written down to net realisable value in connection with
restructuring projects, 256 million of which was exceptional.
11 Fixed investments
Joint ventures are undertakings in which the Group has a long-term
participating interest and which are jointly controlled by the Group
and one or more other parties. Associated companies are
undertakings in which the Group has a participating interest and
is able to exercise significant influence.
Interests in joint ventures and associated companies are stated in
the consolidated balance sheet at the Group’s share of their
aggregate assets and liabilities.
Other fixed investments are stated at cost less any amounts written
off to reflect a permanent impairment.
million million
2002 2001
Share of gross assets of joint ventures 370 855
Share of gross liabilities of joint ventures (96) (147)
Interest in net assets of joint ventures 274 708
Interest in net assets of associates 1–
Total joint ventures and associates 275 708
Other fixed investments 404 176
Total fixed investments 679 884