Property, plant and equipment components are measured at purchase price or production cost less accumulated depreciation and impairment losses.
All property, plant and equipment components and their important components are depreciated, with the exception of land and property, plant and equipment in construction. Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the intended manner.
Annual depreciation rates for material assets are presented below:
|Cooperative ownership rights to apartments, cooperative rights to commercial premises||2.5%|
|Buildings and structures||1.5% - 10%|
|Machinery and technical equipment||10% - 40%|
|Means of transport||14% - 33%|
|IT hardware||20% - 40%|
|Other non-current assets||7% - 20%|
Assets held under a finance lease contract are depreciated over their useful life, provided that there is rational certainty that they would be purchased or ownership transferred. Otherwise, they are depreciated for a period no longer than the term of the lease.
The principles for recognizing impairment losses are the same as those applicable to intangible assets that are described in section 27.1.