© Rolls-Royce Group plc 2004
Legal information
  prev: Intangible fixed assets next: Investments - subsidiary undertakings back: Notes to the accounts back: Financial statements menu |
|
  pdf [1,644k] |
||
|
|
|
|
|
|
| 10 Tangible fixed assets | |||||
|
Land and buildings £m |
Plant and equipment £m |
Aircraft and engines £m |
In course of construction £m |
Total £m |
| Cost or valuation: | |||||
| At January 1, 2003 |
511 | 1,911 | 279 | 198 | 2,899 |
| Exchange adjustments |
2 | (16) | (24) | (8) | (46) |
| Additions at cost |
4 | 104 | 5 | 73 | 186 |
| On acquisitions of businesses |
— | 1 | — | — | 1 |
| On disposals of businesses |
— | (41) | — | — | (41) |
| Reclassifications |
9 | 88 | — | (97) | — |
| Disposals/write-offs |
(4) | (98) | (4) | (10) | (116) |
| At December 31, 2003 |
522 | 1,949 | 256 | 156 | 2,883 |
| Accumulated depreciation: | |||||
| At January 1, 2003 |
77 | 874 | 72 | — | 1,023 |
| Exchange adjustments |
(1) | (14) | (7) | — | (22) |
| Provided during year 1 |
18 | 173 | 32 | — | 223 |
| On disposals of businesses |
— | (2) | — | — | (2) |
| Reclassifications |
5 | (5) | — | — | — |
| Disposals/write-offs |
(3) | (85) | (1) | — | (89) |
| At December 31, 2003 |
96 | 941 | 96 | — | 1,133 |
| Net book value at December 31, 2003 | 426 | 1,008 | 160 | 156 | 1,750 |
| Net book value at December 31, 2002 | 434 | 1,037 | 207 | 198 | 1,876 |
1 Includes impairment charge of £17m relating to the write-down of aircraft to values provided by independent aircraft appraisers. |
|||||
|
|
|
| Tangible fixed assets include: | 2003 £m |
2002 £m |
| Net book value of finance leased assets |
105 | 115 |
| Assets held for use in operating leases: |
||
| Cost |
233 | 259 |
| Depreciation |
(82) | (59) |
| Net book value |
151 | 200 |
| Non-depreciable land |
98 | 98 |
| Land and buildings at cost or valuation comprise: | ||
| Cost |
296 | 285 |
| Valuation at December 31, 1985 |
1 | 1 |
| Valuation at December 31, 1996 1 |
225 | 225 |
|
522 | 511 |
| Land and buildings at net book value comprise: | ||
| Freehold |
395 | 404 |
| Long leasehold |
16 | 17 |
| Short leasehold |
15 | 13 |
|
426 | 434 |
| On a historical cost basis the net book value of land and buildings would have been as follows: | ||
| Cost |
506 | 495 |
| Depreciation |
(176) | (161) |
|
330 | 334 |
| Capitalised interest included in net book value of assets in course of construction | 2 | 2 |
Capital expenditure commitments – contracted but not provided for |
22 | 68 |
The Group has followed the transitional provisions of FRS 15 ‘Tangible fixed assets’, to retain the book value of land and buildings, certain of which were revalued in 1996 (see 1 below). |
||
1 Group properties were revalued at December 31, 1996 as follows: |
||
| i) Specialised properties, including certain of the Group’s major manufacturing sites, were revalued on a depreciated replacement cost basis. | ||
| ii) Non-specialised properties were revalued by reference to their existing use value. | ||
| iii) Properties surplus to the Group’s requirements were revalued on an open market value basis. | ||
In the United Kingdom the revaluation was carried out by Gerald Eve, Chartered Surveyors, Fuller Peiser, Chartered Surveyors and Storey Sons & Parker, Chartered Surveyors, in accordance with the appraisal and valuation manual of the Royal Institution of Chartered Surveyors. Overseas properties were valued principally by independent local valuers. |
||