198 / 330
FINANCIAL INFORMATION
4.2 Consolidated financial statements
4
198
Registration Document 2016 — Capgemini
Property, plant and equipment (PP&E)
Note 14
Property, plant and equipment
recorded in assets in the Consolidated Statement of Financial
The carrying amount of property, plant and equipment is
owned by the Group are measured based on the components
property, plant and equipment have been revalued. Buildings
less accumulated depreciation and any impairment. No items of
Position and corresponds to the historical cost of these items,
approach.
maintenance costs are expensed as incurred.
over the remaining useful lives of the relevant assets. Ongoing
bringing assets into compliance) is capitalized and depreciated
benefits associated with assets (costs of replacing and/or
Subsequent expenditure increasing the future economic
Depreciation is calculated on a straight-line basis over the
based on acquisition cost less any residual value.
estimated useful lives of the relevant assets. It is calculated
Property, plant and equipment are depreciated over the
following estimated useful lives:
Buildings
20 to 40 years
Fixtures and fittings
10 years
Computer equipment
3 to 5 years
Office furniture and equipment
5 to 10 years
Vehicles
5 years
Other equipment
5 years
period end.
Residual values and estimated useful lives are reviewed at each
selling price and the net carrying amount of the relevant asset.
gains and losses corresponding to the difference between the
The sale of property, plant and equipment gives rise to disposal
Leases
incurred over the lease term.
operating leases, and give rise to lease payments expensed as
risks and rewards incidental to ownership are classified as
Leases that do not transfer to the Group substantially all the
in liabilities within borrowings. The asset is depreciated over the
minimum lease payments, with the related obligation recorded
fair value of the leased asset and the present value of future
finance lease and is recognized as an asset at the lower of the
and rewards incidental to ownership, the lease is classified as a
However, when the Group assumes substantially all of the risks
recognized as appropriate.
the obligation is amortized over the lease term. Deferred tax is
period during which it is expected to be used by the Group and