Annual report 20108.31 MB - Boskalis

Financial statements 2010of assets. Modifications and capacity enhancinginvestments are also capitalized at cost andamortized over the remaining life of the asset.Property, plant and equipment under constructionare included in the balance sheet on the basisof installments paid, including interest duringconstruction. Where property, plant and equipmentconsist of components with different useful lives,they are accounted for as separate items.Buildings are depreciated over periods ranging fromten to fifty years. The depreciation periods of themajority of floating and other construction materialranges from ten to twenty years. Furniture and otherfixed assets are depreciated over a period betweenthree and ten years. Land is not depreciated.The wear of dredging equipment is highlydependent on unpredictable project-specificcombinations of soil conditions, materials tobe processed, maritime circumstances and theintensity of the deployment of the equipment. As aresult of this erratic and time-independent patterns,the maintenance and repair expenses for upkeepthe assets are predominantly charged to the incomestatement. In exceptional cases, maintenance andrepair expenses are eligible for capitalization andlinear depreciation.Upon its disposal the revaluation surplus of an itemof property, plant and equipment is transferred fromthe revaluation reserve to the retained earnings.Methods for depreciation, useful life and residualvalue are reassessed at the end of each financialyear and amended if necessary.Leases in terms of which the Group assumessubstantially all the risks and rewards of ownershipare classified as finance leases. Upon initialrecognition the leased asset is measured at anamount equal to the lower of its fair value and thepresent value of the minimum lease payments.Subsequent to initial recognition, the asset isaccounted for in accordance with the accountingpolicy applicable to that asset.Other leases are operating leases and are notrecognised in the Group’s consolidated balancesheet.3.8 Associated companiesAssociated companies, in which the Grouphas a significant influence on the financial andoperating policy, are initially recognized at costincluding the goodwill determined at acquisitiondate. Subsequently associated companies areaccounted for using the equity method, adjustedfor differences with the accounting principles ofthe Group, less any accumulated impairment.When the Group’s share of losses exceeds thebook value of the associated company, the bookvalue is reduced to zero and recognition of furtherlosses is discontinued except to the extent that theGroup has incurred legal or constructive obligationsor made payments on behalf of the associatedcompany.3.9 Non-current receivablesThe non-current receivables are mainly held on along-term basis and/or until maturity and are carriedat amortized cost. Accumulated impairment lossesare deducted from the book value.3.10 InventoriesInventories, which mainly consist of fuel, auxiliarymaterials and spare parts, are stated at the lower ofcost and net realizable value. Net realizable value isthe estimated selling price in the ordinary course ofbusiness, less the estimated costs of selling.3.11 Due from and due to customersDue from and due to customers concerns the grossamount yet to be charged which is expected tobe received from customers for contractual workdone up to the reporting date (hereinafter: "work inprogress"). Work in progress is valued at the costprice of the work done, plus a part of the expectedresults upon completion of the project in proportionto the progress made and less progress billings,advances and provisions. Provisions are recognizedfor expected losses on work in progress as soonas they are foreseen, and deducted from the costprice; if necessary, any profits already recognizedare reversed. The cost price includes projectRoyal Boskalis Westminster nv79