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The residual values and useful lives of property, plant and
equipment are reviewed and adjusted, if appropriate, at least
at each financial year-end.
Property, plant and equipment acquired through finance
leases, whereby the risks and rewards of the assets are sub-
stantially transferred to the Group, are accounted for as Group
assets at their fair value or, if lower, at the present value of
the minimum lease payments, including any sum payable to
exercise a purchase option. The corresponding lease liability is
recorded under financial payables. The assets are depreciated
using the method and rates described earlier for “Property,
plant and equipment”, unless the term of the lease is less
than the useful life represented by such rates and ownership
of the leased asset is not reasonably certain to be transferred
at the lease’s natural expiry; in this case the depreciation
period will be represented by the termof the lease. Any capital
gains realised on the disposal of assets which are leased back
under finance leases are recorded under liabilities as deferred
income and released to the income statement over the term
of the lease. Leases where the lessor substantially retains all
the risks and rewards of ownership of the assets are treated
as operating leases. Payments made under operating leases
are charged to the income statement on a straight-line basis
over the term of the lease.
Non-current assets classified as held for sale are measured
at the lower of carrying amount and fair value less costs to
sell from the moment they qualify as held for sale under the
related accounting standard.