Aviva 2009 Annual Report Download - page 188

186
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
20 – Property and equipment
This note analyses our tangible fixed assets, which are primarily properties occupied by Group companies and computer equipment.
Properties Owner
under occupied Motor Computer
construction properties vehicles equipment Other assets Total
£m £m £m £m £m £m
Cost or valuation
At 1 January 2008 45 499 14 772 466 1,796
Additions 22 7 1 97 89 216
Acquisitions of subsidiaries — 37 — 1 2 40
Disposals (15) (31) (3) (34) (24) (107)
Transfers (4) 4 — — — —
Fair value losses (see below) — (49) — — — (49)
Foreign exchange rate movements 13 106 2 40 72 233
At 31 December 2008 61 573 14 876 605 2,129
Additions 62 11 — 40 36 149
Transfer to investment properties (note 21) (16) (47) — — — (63)
Disposals (7) (49) (2) (82) (196) (336)
Transfers to intangibles (note 17) — — — (23) — (23)
Fair value losses (see below) — (33) — — — (33)
Foreign exchange rate movements (6) (35) (2) (14) (18) (75)
At 31 December 2009 94 420 10 797 427 1,748
Depreciation and impairment
At 1 January 2008 — (3) (7) (578) (266) (854)
Charge for the year — (1) (2) (93) (35) (131)
Disposals — 1 1 33 14 49
Impairment losses charged to restructuring costs — (2) — (8) (40) (50)
Foreign exchange rate movements — — — (29) (48) (77)
At 31 December 2008 — (5) (8) (675) (375) (1,063)
Charge for the year — (1) (1) (76) (37) (115)
Disposals — 2 1 60 92 155
Transfers to intangibles (note 17) — — — 3 — 3
Transfers — — — (1) — (1)
Impairment losses charged to restructuring costs — — — (1) (1) (2)
Foreign exchange rate movements — — 113 15 29
At 31 December 2009 — (4) (7) (677) (306) (994)
Carrying amount
At 1 January 2008 45 496 7 194 200 942
At 31 December 2008 61 568 6 201 230 1,066
At 31 December 2009 94 416 3 120 121 754
Less: Amounts classified as held for sale:
Gross amount — — — — (1) (1)
Accumulated depreciation and impairment — — — — — —
— — — — (1) (1)
94 416 3 120 120 753
Fair value losses of £26 million have been charged (2008: £37 million) to other comprehensive income (note 34), with the
remainder being charged to the income statement.
Owner-occupied properties are stated at their revalued amounts, as assessed by qualified external valuers or by local qualified
staff of the Group in overseas operations, all with recent relevant experience. These values are assessed in accordance with the
relevant parts of the current RICS Appraisal and Valuation Standards in the UK, and with current local valuation practices in other
countries. This assessment, on the basis of Existing Use Value and in accordance with UK Practice Statement 1.3, is the estimated
amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-
length transaction, after proper marketing wherein the parties had acted knowledgeably, prudently and without compulsion,
assuming that the buyer is granted vacant possession of all parts of the property required by the business and disregarding
potential alternative uses. The valuation assessment adopts market-based evidence and is in line with guidance from the
International Valuation Standards Committee and the requirements of IAS 16,
Property, Plant and Equipment .
If owner-occupied properties were stated on a historical cost basis, the carrying amount would be £328 million
(2008: £414 million) .
The Group has no material finance leases for property and equipment.