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Software AG GB 2012, englisch

SOFTWARE AG | ANNUAL REPORT 2012 176 Property, plant and equipment Property, plant and equipment are carried at cost less any accumulated depreciation and impairment losses. When items of property, plant and equipment are sold or scrapped, the corresponding cost and any accu- mulated depreciation are derecognized, and any gains or losses from disposal are recognized in the Con- solidated Income Statement. The cost of items of property, plant and equipment consists of the purchase price, including any import duties and non-refundable purchase taxes and any directly attributable costs required to prepare the asset for its intended use. Any subsequent expenditure, such as service or maintenance charges arising once the asset has been put into operation, is recognized as an expense in the period in which it is incurred. Subse- quent expenditures relating to an item of property, plant and equipment are only added to the carrying amount of the asset if the expenditure improves the condition of the asset beyond its originally assessed standard of performance. Items of property, plant and equipment are generally depreciated using the straight-line method in accor- dance with their useful economic lives. Buildings 40 – 50 years Improvements to buildings/leasehold 8 – 10 years Operating and office equipment 3 – 13 years Computer hardware and accessories 1 – 7 years The terms of useful economic life and methods of depreciation are reviewed on a regular basis to ensure that they are in accordance with the expected pattern of economic benefits of the asset in question. Assets under construction are recognized at cost. Depreciation on these items begins only after they have been put into operation.