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2. Accounting policies• Buildings• Plant and machinery• Vehicles and transport• Office equipmentUp to 50 years5-20 years4-20 years5-10 yearsThe estimated useful lives, residual values anddepreciation method are reviewed at each year end, withthe effect of any changes in estimate accounted for on aprospective basis.The initial cost of property, plant and equipment comprisesits purchase price, including import duties andnon-refundable purchase taxes and any directly attributablecosts of bringing an asset to its working conditionand location for its intended use.Expenditures incurred after property, plant andequipment have been put into operation are normallycharged to income statement in the period in which thecosts are incurred.In situations where it can be clearly demonstrated thatthe expenditures have resulted in an increase in thefuture economic benefits expected to be obtained fromthe use of an item of property, plant and equipmentbeyond its originally assessed standard performance, theexpenditures are capitalised as an additional cost of property,plant and equipment. Costs eligible for capitalisationinclude costs of periodic, planned significant inspectionsand overhauls necessary for further operation.The gain or loss arising on the disposal or retirement ofan item of property, plant and equipment is determinedas the difference between the sales proceeds and thecarrying amount of the asset and is recognised in theincome statement.Impairment of tangible and intangible assetsTangible and intangible assets are reviewed for impairmentwhenever events or changes in circumstances indicatethat the carrying amount of an asset may not berecoverable. Whenever the carrying amount of an assetexceeds its recoverable amount, an impairment loss ischarged to the income statement.At each balance sheet date, the Company and the Groupreview the carrying amounts of their tangible andintangible assets to determine whether there is anyindication that those assets have suffered an impairmentloss. If any such indication exists, the recoverable amountof the asset is estimated in order to determine the extentof the impairment loss (if any). Where it is not possible toestimate the recoverable amount of an individual asset,the Group estimates the recoverable amount of the cashgeneratingunit to which the asset belongs.Intangible assets with infinite useful lives and intangibleassets not yet available for use are tested for impairmentannually, and whenever there is an indication that theasset may be impaired.Recoverable amount is the higher of fair value lesscosts to sell and value in use. In assessing value in use,the estimated future cash flows are discounted to theirpresent value using a pre-tax discount rate that reflectscurrent market assessments of the time value of moneyand the risks specific to the asset.The net selling price is the amount obtainable from thesale of an asset in an arm’s length transaction less thecost of disposal, while value in use is the present valueusing a pre-tax discount rate that reflects current marketassessments of the time value of money and the risksspecific to the asset of estimated future cash flowsexpected to arise from the continuing use of an asset andfrom its disposal at the end of its useful life. Recoverableamounts are estimated for individual assets or, if it is notpossible, for the relevant cash-generating unit.If the recoverable amount of an asset (or cash-generatingunit) is estimated to be less than its carrying amount,the carrying amount of the asset (cash-generating unit)is reduced to its recoverable amount. An impairment lossis recognised immediately in profit or loss, unless the relevantasset is land or a building other than an investmentproperty carried at a revalued amount, in which case theimpairment loss is treated as a revaluation decrease.98 Financial report