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• Depreciation
• Net exchange differences recognized under IAS 21
• Other changes
• Existence and amounts of restrictions on ownership title
• Assets pledged as security for liabilities
• Assets in the course of construction
• Contractual commitments for the acquisition of property, plant, and equipment
• Compensation for assets impaired, lost, or given up
If property, plant, and equipment are stated at revalued amounts, these items must be specified:
• The effective date of the valuation
• Whether an independent valuer was involved
• Methods and significant assumptions used in assessing fair values
• The extent to which fair values were measured by reference to observable prices in an active market, recent market transactions on an arm’s-length basis, or
were estimated using other techniques
• For each class of asset revalued, the carrying amount that would have been recognized if the class had not been revalued
• The revaluation surplus, indicating the change for the period and any restrictions on distributions to shareholders
Notes to Financial Statements
13. Property, Plant, and Equipment
EXTRACTS FROM PUBLISHED FINANCIAL STATEMENTS
HOLCIM, Annual Report, 2009
Property, plant, and equipment are valued at acquisition or construction cost less depreciation and impairment loss. Cost includes transfers from equity of any
gains or losses on qualifying cash flow hedges. Depreciation is charged so as to write off the cost of property, plant, and equipment over their estimated useful
lives, using the straight-line method, on the following bases:
Land No depreciation except on land with raw material reserves
Building and installations 20 to 40 years
Machinery 10 to 30 years
Furniture, vehicles, and tools 3 to 10 years
Costs are only included in the asset’s carrying amount when it is probable that economic benefits associated with the item will flow to the Group in future
periods and the cost of the item can be measured reliably. Costs include the initial estimate of the costs of dismantling and removing the item and restoring the
site on which it is located. All other repairs and maintenance expenses are charged to the income statement during the period in which they are incurred.
Mineral reserves, which are included in the class “land” of property, plant, and equipment, are valued at cost and are depreciated based on the physical unit-ofproduction
method over their estimated commercial lives.
Costs incurred to gain access to mineral reserves are capitalized and depreciated over the life of the quarry, which is based on the estimated tons of raw material
to be extracted from the reserves.
Interest cost on borrowings to finance construction projects which necessarily takes a substantial period of time to get ready for their intended use are
capitalized during the period of time that is required to complete and prepare the asset for its intended use. All other borrowing costs are expensed in the period
in which they are incurred.
Government grants received are deducted from property, plant, and equipment and reduce the depreciation charge accordingly.
Leases of property, plant, and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Property,
plant, and equipment acquired through a finance lease are capitalized at the date of the commencement of the lease term at the present value of the minimum
future lease payments as determined at the inception of the lease. The corresponding lease obligations, excluding finance charges, are included in either current
or long-term financial liabilities.
For sale-and-leaseback transactions, the book value of the related property, plant, or equipment remains unchanged. Proceeds from a sale are included as a