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74 Marks and Spencer Group plc
Notes to the financial statements continued
14 PROPERTY, PLANT AND EQUIPMENT
Assets
Fixtures, in the
Land and fittings & course of
buildings equipment construction Total
£m £m £m £m
At 3 April 2004
Cost 2,448.1 3,156.8 50.4 5,655.3
Accumulated depreciation (73.9) (1,861.5) – (1,935.4)
Net book value 2,374.2 1,295.3 50.4 3,719.9
Year ended 2 April 2005
Opening net book value 2,374.2 1,295.3 50.4 3,719.9
Exchange difference 1.8 0.3 0.2 2.3
Additions125.5 177.8 15.2 218.5
Transfers 14.3 29.9 (44.2) –
Disposals – (1.9) – (1.9)
Disposal of subsidiaries (73.6) (12.5) – (86.1)
Depreciation charge2(12.9) (253.6) – (266.5)
Closing net book value 2,329.3 1,235.3 21.6 3,586.2
At 2 April 2005
Cost 2,412.0 3,162.1 21.6 5,595.7
Accumulated depreciation (82.7) (1,926.8) – (2,009.5)
Net book value 2,329.3 1,235.3 21.6 3,586.2
Year ended 1 April 2006
Opening net book value 2,329.3 1,235.3 21.6 3,586.2
Exchange difference 2.2 2.0 0.3 4.5
Additions134.7 251.8 40.3 326.8
Transfers – 20.3 (20.3) –
Disposals (34.1) (6.2) – (40.3)
Assets of discontinued operations (11.4) (21.0) (1.4) (33.8)
Depreciation charge2(10.7) (256.9) – (267.6)
Closing net book value 2,310.0 1,225.3 40.5 3,575.8
At 1 April 2006
Cost 2,392.2 3,287.1 40.5 5,719.8
Accumulated depreciation (82.2) (2,061.8) – (2,144.0)
Net book value 2,310.0 1,225.3 40.5 3,575.8
1‘Additions’ includes £5.4m (last year £4.6m) in respect of discontinued operations.
2‘Depreciation charge’ includes £6.3m (last year £7.8m) in respect of discontinued operations.
The net book values included in the tables above include land and buildings of £44.9m (last year £50.9m) and equipment of
£5.0m (last year £5.5m) where the Group is a lessee under a finance lease.
In accordance with IFRS 1 – ‘First time adoption of International Financial Reporting Standards’ and IAS 17 – ‘Leases’ the Group
reviewed the classification of all leases at the transition balance sheet date of 4 April 2004. Under IAS 17, the land and building
elements of a lease need to be considered separately and the land element is normally deemed to be an operating lease. As a result,
the buildings element of a number of properties, previously treated as operating leases, have been reclassified as finance leases. In
addition, the revaluation element held in respect of leasehold land previously held as a fixed asset has been derecognised and the
payments made to acquire such land have been reclassified as leasehold prepayments.
Under the provisions of IFRS 1, the Group adopted a valuation as deemed cost on transition for freehold land and buildings.
A property valuation was prepared on an existing use basis by external valuers DTZ Debenham Tie Leung as at 2 April 2004.
The Group elected under IFRS 1 to reflect this valuation, in so far as it related to freehold land and buildings, as deemed cost
on transition at 4 April 2004. This gave rise to an uplift of £530.9m against the previous carrying value.