Annual Report 2002 - Agfa

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The estimated useful lives of the respective asset categories are as follows:
Buildings
20 to 50 years
Outdoor infrastructure
10 to 20 years
Plant installations
6 to 20 years
Machinery and equipment
6 to 12 years
Laboratory and research facilities
3 to 5 years
Vehicles
4 to 8 years
Computer equipment
3 to 5 years
Furniture and fixtures
4 to 10 years
1. Significant accounting policies
continued
Leased assets
Leases in terms of which the Group assumes substantially all the risks and rewards
of ownership are classified as finance leases. Plant and equipment acquired by way
of finance lease is stated at an amount equal to the lower of its fair value and the
present value of the minimum lease payments at inception of the lease, less
accumulated depreciation and impairment losses.
The depreciation period is the estimated useful life of the asset, or the lease term
if shorter.
(k) Investments in equity securities
Investments classified as non-current assets comprise participations in companies in
which the Group has no control.
Where the Group holds, directly or indirectly, more than 20% of the voting power
and/or exercises significant influence over the financial and operating policies,
the investments are referred to as associated companies. Investments in associated
companies are accounted for using the equity method. If there is an indication that
an investment in an associate may be impaired, the accounting policy with respect
to impairment is applied.
Other investments in equity securities are classified as available-for-sale and are
stated at fair value, except for those equity instruments that do not have a quoted
market price in an active market and whose fair value cannot be reliably measured.
Those equity instruments that are excluded from fair valuation are stated at cost.
A gain or loss arising from a change in fair value of an investment classified as
available-for-sale that is not part of a hedging relationship is recognized directly in
equity. When the investment is sold, collected, or otherwise disposed of, or when
the carrying amount of the investment is impaired, the cumulative gain or loss
previously recognized in equity is transferred to the income statement.
The fair value of investments available-for-sale is their quoted bid price at
the balance sheet date.
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