2009 Annual Report - CRH

13. Property, Plant and Equipment
Land and Plant and
Assets in
course of
buildings (i) machinery Transport construction Total
€m €m €m €m €m
At 31st December 2009
Cost/deemed cost 5,710 7,113 803 416 14,042
Accumulated depreciation (and impairment charges) (1,245) (3,758) (504) - (5,507)
Net carrying amount 4,465 3,355 299 416 8,535
At 1st January 2009, net carrying amount 4,321 3,567 380 620 8,888
Translation adjustment (59) (61) (8) (5) (133)
Reclassifications 279 164 (2) (441) -
Additions at cost (ii) 70 207 17 238 532
Arising on acquisition (note 32) 46 51 9 4 110
Disposals at net carrying amount (39) (19) (10) - (68)
Depreciation charge for year (146) (531) (87) - (764)
Impairment charge for year (iii) (7) (23) - - (30)
At 31st December 2009, net carrying amount 4,465 3,355 299 416 8,535
The equivalent disclosure for the prior year is as follows:
At 31st December 2008
Cost/deemed cost 5,434 6,952 847 620 13,853
Accumulated depreciation (and impairment charges) (1,113) (3,385) (467) - (4,965)
Net carrying amount 4,321 3,567 380 620 8,888
At 1st January 2008, net carrying amount 4,030 3,416 378 402 8,226
Translation adjustment 61 8 13 (26) 56
Reclassifications 58 128 (4) (182) -
Additions at cost (ii) 141 413 71 414 1,039
Arising on acquisition (note 32) 218 179 20 12 429
Disposals at net carrying amount (41) (33) (7) - (81)
Depreciation charge for year (140) (536) (91) - (767)
Impairment charge for year (iii) (6) (8) - - (14)
At 31st December 2008, net carrying amount 4,321 3,567 380 620 8,888
At 1st January 2008
Cost/deemed cost 4,963 6,303 731 402 12,399
Accumulated depreciation (933) (2,887) (353) - (4,173)
Net carrying amount 4,030 3,416 378 402 8,226
(i) The carrying value of mineral-bearing land included in the land and buildings category above amounted to €1,797 million at the balance sheet date (2008: €1,780
million).
(ii) Borrowing costs capitalised during the financial year amounted to €9.5 million (2008: €13 million). The average capitalisation rate employed to determine the
amount of borrowing costs eligible for capitalisation was 5.5% (2008: 5.5%).
(iii) Property, plant and equipment assets are reviewed for potential impairment at each reporting date by applying a series of external and internal indicators specific
to the assets under consideration; these indicators would encompass macroeconomic issues including the inherent cyclicality of the building materials sector,
actual obsolescence or physical damage, a deterioration in forecast performance in the internal reporting cycle and restructuring and rationalisation programmes
inter alia. In the event that there is an indication that an asset (or collection of assets) may be impaired, the Group measures the potential impairment using a
discounted cash flow technique and records an impairment where the recoverable amount (being the higher of fair value less costs to sell and value-in-use) is less
than the carrying amount. The impairment charge for 2009 of €30 million (2008: €14 million) represents charges across a number of business units in the Group,
none of which is individually material.
CRH 85