Ryanair 2012 Annual Report Download - page 140

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loss, except for differences arising on qualifying cash-flow hedges, which are recognised in other
comprehensive income.
Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and provisions
for impairments, if any. Cost includes expenditure that is directly attributable to the acquisition of the asset. Cost
may also include transfers from other comprehensive income of any gain or loss on qualifying cash-flow hedges
of foreign currency purchases of property, plant and equipment. Depreciation is calculated so as to write off the
cost, less estimated residual value, of assets on a straight-line basis over their expected useful lives at the
following annual rates:
Rate of
Depreciation
Hangar and buildings .....................................................................................................................
5%
Plant and equipment (excluding aircraft) .......................................................................................
20-33.3%
Fixtures and fittings .......................................................................................................................
20%
Motor vehicles ...............................................................................................................................
33.3%
Aircraft are depreciated on a straight-line basis over their estimated useful lives to estimated residual
values. The estimates of useful lives and residual values at year-end are:
Aircraft Type
Number of Owned Aircraft
at March 31, 2012
Useful Life
Residual Value
Boeing 737-800s
235(a)
23 years from date of
15% of current market value of new
manufacture
aircraft, determined periodically
______________
(a) The Company operated 294 aircraft as of March 31, 2012, of which 59 were leased.
The Company‘s estimate of the recoverable amount of aircraft residual values is 15% of current market
value of new aircraft, determined periodically, based on independent valuations and actual aircraft disposals
during prior periods.
An element of the cost of an acquired aircraft is attributed on acquisition to its service potential,
reflecting the maintenance condition of its engines and airframe. This cost, which can equate to a substantial
element of the total aircraft cost, is amortised over the shorter of the period to the next maintenance check
(usually between 8 and 12 years for Boeing 737-800 aircraft) or the remaining life of the aircraft. The costs of
subsequent major airframe and engine maintenance checks are capitalised and amortised over the shorter of the
period to the next check or the remaining life of the aircraft.
Advance and option payments made in respect of aircraft purchase commitments and options to acquire
aircraft are recorded at cost and separately disclosed within property, plant and equipment. On acquisition of the
related aircraft, these payments are included as part of the cost of aircraft and are depreciated from that date.
Rotable spare parts held by the Company are classified as property, plant and equipment if they are
expected to be used over more than one period.
Gains and losses on disposal of items of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised on a
net basis within other income/(expenses) in profit or loss.
Aircraft maintenance costs
The accounting for the cost of providing major airframe and certain engine maintenance checks for
owned aircraft is described in the accounting policy for property, plant and equipment.
For aircraft held under operating lease agreements, Ryanair is contractually committed to either return
the aircraft in a certain condition or to compensate the lessor based on the actual condition of the airframe,