Annual Report 2008 English [PDF, 2.69 MB] - Tessenderlo Group

Tessenderlo Group
(G) Property, plant and equipment
• Owned assets
Items of property, plant and equipment (further also “PP&E”) are stated at cost less accumulated
depreciation and impairment losses. Cost includes the purchase price and any costs directly attributable
to bringing the asset to the location and condition necessary for it to be capable of operating in the
manner intended by management (e.g. non refundable tax, transport and the costs of dismantling and
removing the items and restoring the site on which they are located, if applicable). The cost of a selfconstructed
asset is determined using the same principles as for an acquired asset and includes the
cost of materials, direct labour and an appropriate proportion of indirect costs. Borrowing costs directly
attributable to the acquisition, construction or production of an asset, requiring a long preparation, are
included in the cost of the asset.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items of property, plant and equipment.
• Subsequent expenditure
Subsequent expenditure incurred in replacing or renewing components of some items of property,
plant and equipment is accounted for as the acquisition of a separate asset and the replaced asset is
written off. Capitalisation of subsequent expenditure is only done when it increases the future economic
benefits embodied in the item of property, plant and equipment. Repair and maintenance, which do not
increase the future economic benefits of the asset to which they relate, are expensed as incurred.
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• Depreciation
Depreciation is charged to the income statement as from the date the asset is available for use, on
a straight-line basis over the estimated useful lives of each part of an item of property, plant and
equipment.
The estimated useful lives of the respective asset categories are as follows:
Improvements to land
Buildings
Building improvements
Plant installations
Machinery and equipment
Furniture and office equipment
Extrusion and tooling equipment
Laboratory and research – infrastructure
Vehicles
Computer equipment
10 to 20 years
20 to 40 years
10 to 20 years
6 to 20 years
5 to 15 years
4 to 10 years
3 to 7 years
3 to 5 years
4 to 10 years
3 to 5 years
Land is not depreciated as it is deemed to have an indefinite life.