12 Property, plant and equipment

The initial cost of an item of plant or equipment is capitalised where it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The cost is then depreciated on a straight line basis over the item’s estimated useful working life.

The current depreciation rates by class of asset are as follows:

  • Asset under construction: not depreciated but tested annually for impairment
  • Computer equipment: up to 4 years straight line
  • Office equipment : up to 4 years straight line
  • Motor vehicles: 25% in first month and straight line over the remaining 47 months
  • Property: in line with economic use

 

2014
£m

2013
£m

Cost

 

 

As at 1 January

221

173

Additions

79

57

Exchange difference

(2)

Transfer to investment property

(45)

Disposals

(10)

(9)

As at 31 December

243

221

Depreciation

 

 

As at 1 January

(92)

(81)

Provided during the year

(13)

(18)

Disposals

8

7

As at 31 December

(97)

(92)

Net book value as at 31 December

146

129