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APPENDIX B
EXAMPLES
OF IMPAIRMENT DISCLOSURES
Panel A: Disclosures under UK GAAP
Christie Group plc annual report and accounts 2004 (page 37)
Tangible Fixed Assets
Tangible fixed assets are stated at cost, net of depreciation and provision for any impairment.
Depreciation is calculated to write down the cost of all tangible fixed assets
to estimated residual
value by equal annual installments over their expected useful lives. The periods generally
applicable are:
Years
Leasehold property
Lease term
Fixtures, fittings and equipment
5-10
Computer equipment
2-3
Motor vehicles
4
SIG plc annual report and accounts 2004 (page 56)
Tangible fixed assets
Tangible fixed assets are shown at original cost to the Group less accumulated
depreciation and
any provision for impairment.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of
fixed assets on a straight line basis over their estimated useful lives as follows:
Freehold buildings – 50
years
Leasehold buildings – period
of lease
Plant and machinery – 3 to 8 years
Panel B: Disclosures under
IFRS
Christie Group plc annual report and accounts 2006 (page 42)
2.7 Property, plant and equipment
Tangible fixed assets are stated at cost, net of depreciation and provision for any impairment.
Depreciation is calculated to write down the cost of all tangible fixed assets to estimated residual
value by equal annual installments over their expected useful lives as follows:
Leasehold property Lease term
Fixtures, fittings and equipment 5 – 10 years
Computer equipment 2 – 3 years
Motor vehicles 4 years
The assets’ residual values and useful lives are reviewed,
and adjusted if appropriate, at each
balance sheet date. An asset’s carrying amount is written down immediately to its recoverable
amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the disposal proceeds with the
carrying amount and are included in the income statement.
