Cap Gemini - Registration Document 2016

4

FINANCIAL INFORMATION

4.2 Consolidated financial statements

Property, plant and equipment (PP&E) Note 14

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

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 Computer equipment

10 years

3 to 5 years 5 to 10 years

Office furniture and equipment

Vehicles

5 years 5 years

Other equipment

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Registration Document 2016 — Capgemini