Saint Gobain - Registration document 2016

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9 FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
232 SAINT-GOBAIN - REGISTRATION DOCUMENT 2016
Property, plant and equipment 5.3
less accumulated depreciation and impairment.
Land, buildings and equipment are carried at historical cost
flow hedges of property, plant and equipment purchases.
transfers from equity of any gains/losses on qualifying cash
attributable to the acquisition, as well as the impact of
Cost may also include incidental expenses directly
will flow to the Group. They include mainly the costs of
when it is probable that associated future economic benefits
resources are included in property, plant and equipment
Expenses incurred in exploring and evaluating mineral
costs and all costs incurred in assessing the technical
topographical or geological studies, drilling costs, sampling
feasibility and commercial viability of extracting the mineral
resource.
the cost of the related asset if they are significant.
acquisition of property, plant and equipment are included in
Material borrowing costs incurred for the construction and
are intended to be used until the end of their useful lives.
residual value, as they chiefly consist of industrial assets that
Property, plant and equipment are considered as having no
which are regularly reviewed:
Property, plant and equipment other than land are
straight-line basis over the following estimated useful lives,
depreciated using the components approach on a
Major factories and offices ‹ 30-40 years
Other buildings ‹ 15-25 years
Production machinery and equipment ‹ 5-16 years
Vehicles ‹ 3-5 years
computer equipment
Furniture, fixtures, office and ‹ 4-16 years
year compared with extraction capacity.
lives, based on the quantity of gypsum extracted during the
Gypsum quarries are depreciated over their estimated useful
Provisions for site restoration are recognized as components
periodically and may be discounted over the expected useful
deterioration in site conditions. These provisions are reviewed
determined conditions or in the event of a sudden
obligation to restore a site in accordance with contractually
of assets whenever the Group has a legal or constructive
over the same useful life as that used for mines and quarries.
lives of the assets concerned. The component is depreciated
the income statement over the estimated useful lives of the
equipment are recorded under “Other payables” and taken to
Government grants for purchases of property, plant and
relevant assets.