7. Property, plant and equipment
Items of property, plant and equipment (except investment property - see Accounting policy 9) are stated at cost less accumulated depreciation and impairment losses. Where an item of property, plant and equipment comprises major components having different useful lives, these are accounted for separately.
Depreciation is charged to profit or loss on a straight-line basis so as to write-off the depreciable amount of property, plant and equipment (including assets owned and let on operating leases) over their estimated useful lives. The depreciable amount is the cost of an asset less its residual value. Freehold land is not depreciated.
The estimated useful lives of the Group’s property, plant and equipment are:
|
Freehold buildings |
50 years |
|
Long leasehold property (leases with more than 50 years to run) |
50 years |
|
Short leaseholds |
unexpired period of lease |
|
Property adaptation costs |
10 to 15 years |
|
Computer equipment |
up to 5 years |
|
Other equipment |
4 to 15 years |
The residual value and useful life of property, plant and equipment are reviewed at each balance sheet date and updated for any changes to previous estimates.