DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

HEP ANNUAL REPORT 2010
76
CHAPTER 6 - FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS OF THE HEP GROUP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses, except
for land, which is carried at cost.
The estimated useful lives, residual values and depreciation methods are reviewed at each year end, with the
effect of any changes in estimate recognised within income statement.
Property, plant and equipment in use are depreciated using the straight-line method on the following
bases:
Buildings 2010 and 2009
Hydroelectric power plants
(Dams, embankments, buildings and other structures and facilities)
20 – 50 years
Thermal power plants
(Buildings and other structures)
33 – 50 years
Electricity transmission and distribution plants and facilities (Transmission lines and buildings of transformer
stations, switch-yard, dispatch centers and others)
20 – 40 years
Water and steam pipelines and other thermal power generation and transmission plants and facilities 33 years
Gas pipelines 20 – 25 years
Administrative buildings 50 years
Plant and equipment
Hydroelectric power plants 10 – 33 years
Thermal power plants 6 – 25 years
Electricity transmission plants and facilities (electric parts of transformer stations and transformer; and electric
parts of transmission lines)
15 – 40 years
Electricity distribution plants and facilities (electric parts of transformer stations and transformers, electric parts of
distribution lines, measuring instruments, meters and other equipment)
8 – 40 years
Thermal power stations, hot-water pipelines and other equipments 15 – 30 years
Gas meters and other gas network equipment 5 – 20 years
Other equipment and vehicles
IT equipment 5 – 20 years
Software licenses 5 years
Telecommunications equipment 5 – 20 years
Motor vehicles 5 – 8 years
Office furniture 10 years
The initial cost of property, plant and equipment contain the purchase price, including all customs duties and nonrefundable
taxes and all costs directly attributable to bringing an asset to the condition and location for its intended
use. Expenditures incurred after the property, plant and equipment have been put into use are charged to expense
the period in which they are incurred.