measure and monitor the processes and report results ... - Refresco.de

Financial review 2010
2.6 Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost
less accumulated depreciation and accumulated impairment
losses. Cost includes expenditure that is directly attributable
to the acquisition of the asset. The cost of self­constructed
assets includes the cost of materials and direct labor, any other
costs directly attributable to bringing the assets to a condition
suitable for their intended use, and the costs of dismantling
and removing the items and restoring of the site on which they
are located. Borrowing costs that are directly attributable
to the acquisition or construction of a qualifying asset are
allocated to the assets when incurred.
When elements of an item of property, plant and equipment
have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and
equipment are determined by comparing the net proceeds of
disposal with the carrying amount and are recognized on a net
basis in other income in profit or loss.
Subsequent costs
The cost of replacing part of an item of property, plant and
equipment is recognized in the carrying amount of the item if
it is probable that the future economic benefits embodied
within the part will flow to the Group and its cost can be
measured reliably, the carrying amount of the replaced part
is derecognized. The costs of the day­to­day maintenance
of property, plant and equipment are recognized in profit or
loss as incurred.
Depreciation
Depreciation is recognized in profit or loss on a straight­line
basis over the estimated useful lives of each element of an
item of property, plant and equipment. Land is not depreciated.
The estimated useful lives for the current and comparative
periods are as follows:
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Buildings : 25 years
Machinery and equipment : 5­10 years
Other fixed assets : 3­10 years
Depreciation methods, useful lives and residual values are
reviewed at each reporting date.
2.7 Intangible assets
Goodwill
Goodwill represents the excess of the cost of an acquisition over
the fair value of the Group share of the net identifiable assets of
the acquired subsidiary at the date of acquisition. Goodwill on
acquisition of subsidiaries is included in ‘intangible assets’.
Goodwill is tested annually for impairment and carried at cost
less accumulated impairment losses. Impairment losses on
goodwill are not reversed. As part of the adoption of IFRS,
the Group elected not to restate business combinations that
occurred prior to the January 1, 2008 transition date. In respect
of acquisitions prior to January 1, 2008, goodwill represents the
amount recognized under the previous accounting framework
of the Group, Dutch GAAP.
Other intangibles
Other intangibles consist of software. Software acquired by
the Group is measured at cost less accumulated amortization
and accumulated impairment losses. Subsequent expenditure
is capitalized only to the extent that it increases the future
economic benefits embodied in the specific asset to which it
relates. All other expenditure, including expenditure on
internally generated goodwill and brands, is recognized in
profit or loss as incurred.
Amortization is recognized in the income statement on a straightline
basis over the estimated useful lives, generally 3 years.
2.8 Leased assets
Leases in terms of which the Group assumes substantially all
the risks and rewards of ownership are classified as finance
leases. Upon initial recognition, the leased asset is measured
at an amount equal to the lower of its fair value and the