(n) Property and equipment:
Property and equipment is stated at cost excluding servicing cost, less accumulated depreciation and accumulated impairment. Changes in the expected useful life are accounted for by changing the depreciation period or method, as appropriate, and treated as changes in accounting estimates.
This cost includes expenses that have been directly attributed to the asset’s acquisition.
Depreciation is recognized in net income on a straight-line basis over the estimated useful lives of each part of an item of property and equipment.
Estimated useful lives for 2016 and 2017 are as follows:
|
Buildings |
|
50 years |
|
Installations (in general) |
|
10 years |
|
Equipment |
|
5 years |
|
Office furniture |
|
5 years |
Property and equipment is derecognized on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in “Impairments” in the income statement in the year the asset is derecognized.