Ardagh Glass Finance plc - Irish Stock Exchange

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Property, plant and equipment (Continued)
Impairment
Impairment tests for items of property, plant and equipment are performed on an entity level basis
and resulted in the Group recognising impairment costs of A nil in the current and previous year. The
recoverable amounts in property, plant and equipment are based on value-in-use calculations. The same
cash flow projections and discount rates for items of property, plant and equipment were used for the
goodwill impairment calculations (Note 8). Impairment charges are recognised within other income and
expense in the Group income statement.
Included in property, plant and equipment is an amount for land of A68,700,000 (2007:
A69,025,000).
The depreciation charge for capitalised leased assets was A6,663,000 (2007: A10,154,000) and the
related finance charges amounted to A2,043,000 (2007: A2,161,000). The net carrying amount by class of
assets at each Balance Sheet date is as follows:
2008 2007
E’000 E’000
Land and buildings ................................................. 10,575 14,404
Property, plant and equipment ........................................ 13,450 25,726
Office equipment and vehicles ......................................... 97 194
24,122 40,324
Operating lease commitments
During the year the operating lease commitments relating to the following class of assets were
charged to the income statement:
2008 2007
E’000 E’000
Plant and machinery ................................................. 1,226 2,581
Land and buildings .................................................. 4,394 4,902
Motor vehicles ...................................................... 3,281 —
8,901 7,483
At 31 December 2008 the Group had annual commitments under non-cancellable operating leases
which expire:
2008 2007
E’000 E’000
Within 1 year ..................................................... 4,258 3,501
Within 2–5 years inclusive ............................................ 6,100 7,051
After 5 years ..................................................... 5,764 6,673
16,122 17,225
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