Setting new standards - Friends Life

PARENT COMPANY ACCOUNTS
ABBREVIATIONS AND DEFINITIONS
Notes to the consolidated accounts continued
17. Property and equipment
Fixtures,
Owner
fittings and
occupied Motor Computer office
properties vehicles equipment equipment
at valuation at cost at cost at cost Total
£m £m £m £m £m
At 1 January 2005 119 10 61 43 233
Additions through business combinations - - - 1 1
Other additions 2 3 7 1 13
Revaluation (3) - - - (3)
Disposals (72) (4) (30) (27) (133)
At 31 December 2005 46 9 38 18 111
Other additions 3 1 8 3 15
Revaluation 6 - - - 6
Disposals - (8) (1) - (9)
At 31 December 2006 55 2 45 21 123
Depreciation
At 1 January 2005 - 5 44 16 65
Depreciation charge for year - 2 7 2 11
Disposals - (3) (24) (11) (38)
At 31 December 2005 - 4 27 7 38
Depreciation charge for year - 1 7 2 10
Disposals - (4) (1) - (5)
At 31 December 2006 - 1 33 9 43
Carrying amounts
At 31 December 2005 46 5 11 11 73
At 31 December 2006 55 1 12 12 80
If owner occupied properties were measured on a cost basis, the carrying amount would be £31m (2005: £32m).
18. Investment properties
2006 2005
£m £m
At 1 January 1,912 1,527
Purchases 285 201
Disposals (39) (34)
Fair value adjustments 268 218
At 31 December 2,426 1,912
Investment properties are carried at fair value. The properties are independently valued in accordance with the Royal Institute of Chartered
Surveyors’ guidelines on the basis of open market value. The key assumptions used in preparing the property valuations relate to tenure, letting
and town planning and the location, condition and state of repair of the properties. The last valuation was conducted on 31 December 2006.
In accordance with IAS 17 Leases, properties held by the Group under operating leases are classified as investment properties when the
properties otherwise meet the definition of investment properties.
Friends Provident Annual Report & Accounts 2006 125