Financial statements - Mondi

Notes to the combined and
consolidated financial statements
continued
for the year ended 31 December 2010
12 Property, plant and equipment (continued)
Land and Plant and
2009/E million buildings equipment Other 1 Total
Cost
At 1 January 1,352 5,178 901 7,431
Additions 98 201 270 569
Disposal of assets (9) (74) (14) (97)
Disposal of businesses (see note 30) (19) (74) (2) (95)
Reclassification 29 139 (302) (134)
Currency movements 24 220 21 265
At 31 December 1,475 5,590 874 7,939
Accumulated depreciation
At 1 January 566 2,976 278 3,820
Charge for the year 35 281 25 341
Impairments 2 13 71 4 88
Disposal of assets (6) (72) (12) (90)
Disposal of businesses (see note 30) (6) (50) (1) (57)
Reclassification (30) (68) (16) (114)
Currency movements 5 91 8 104
At 31 December 577 3,229 286 4,092
Net book value as at 31 December 898 2,361 588 3,847
Notes:
1
Other includes E190 million (2009: E519 million) of assets in the course of construction, which are not yet being depreciated in accordance with the accounting policy
set out in note 1.
2
Impairments include E33 million (2009: E78 million) of asset impairments reflected in special items, E14 million (2009: E8 million) of asset impairments as a result of
being classified as held for sale reflected in special items, and E6 million (2009: E2 million) of other impairments. Impairments reversed consist of E9 million (2009: Enil)
of reversals of asset impairments reflected in special items.
Included in the cost above is E8 million of interest (2009: E45 million) and E1 million of foreign exchange gains (2009: E2 million
of foreign exchange losses) incurred on qualifying assets which has been capitalised during the year. Tax relief on interest and
foreign exchange gains/(losses) capitalised is based on the tax rates prevailing in the jurisdiction in which these items are incurred.
The net book value and depreciation charges relating to assets held under finance leases amount to E20 million (2009: E16 million)
and E3 million (2009: E3 million) respectively.
The net book value of land and buildings comprises:
E million 2010 2009
Freehold 944 863
Leasehold – long 1 2
Leasehold – short (less than 50 years) 7 33
Total land and buildings 952 898
A register of South African land and buildings and of leased assets is open for inspection upon prior arrangement at the registered
office of Mondi Limited.
108 Annual report and accounts 2010