Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is recorded on a straight-line basis over the expected useful lives of the assets as follows:
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Buildings and constructions |
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Buildings and constructions |
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20–33 years |
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Light buildings and constructions |
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3–20 years |
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Machinery and equipment |
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Production machinery, measuring and test equipment |
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1–5 years |
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Other machinery and equipment |
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3–10 years |
Land and water areas are not depreciated.
Maintenance, repairs and renewals are generally expensed in the period in which they are incurred. However, major renovations are capitalized and included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the Group. Major renovations are depreciated over the remaining useful life of the related asset. Leasehold improvements are depreciated over the shorter of the lease term and the useful life. Gains and losses on the disposal of property, plant and equipment are included in operating profit or loss.