PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018
5
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Property, plant and equipment Note 4.2 Property, plant and equipment are recognised at acquisition cost and broken down by component. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Useful life is reviewed on a regular basis. Items of property, plant and equipment are written down when their recoverable amount falls below their net carrying amount. The average depreciable lives for the major categories of property, plant and equipment are as follows:
In accordance with IAS 17, assets acquired under finance lease contracts are capitalised, and a corresponding lease debt is recognised, when the lease contract transfers substantially all the risks and rewards related to ownership of the asset to the Group. Buildings which have been subject to sale and lease back contracts are treated in a similar manner. Depreciation of property, plant and equipment is recognised within operating profit in the income statement. In accordance with the amendments to standards IAS 41 and IAS 16, vines are, since 1 July 2016, valued at acquisition cost and depreciated over their useful life. In accordance with IAS 41, agricultural produce (harvests) continues to be recognised at fair value on the balance sheet, after deducting estimated selling costs, as from the date at which it is possible to obtain a reliable assessment of price, for example by referring to an active market. Changes in fair value are recognised in profit and loss. Land on which biological assets are planted is measured in accordance with IAS 16.
Buildings
15 to 50 years 5 to 15 years
Machinery and equipment
Other property, plant and equipment
3 to 5 years
Vines
25 to 33 years
Movements in the year
Foreign currency gains and losses
Other movements 30.06.2017
30.06.2016 Acquisitions Allowances Disposals
€ million
Land
342
6
- - - - - - -
(5) (9)
0
3
346
Buildings
1,168 1,847
42 55 67
(24) (33) (19)
29 60
1,206 1,882
Machinery & equipment
(46) (29)
Other property, plant and equipment (1)
772 125
(78)
713 146
Assets in progress
152
(1)
(3)
(127)
Advance on property, plant and equipment
26
16
0
0
(3)
38
GROSS VALUE
4,279
338
(91)
(79)
(116)
4,331
Land
(34)
- - - - - -
(2)
0 7
0 9
2 3
(34)
Buildings
(488)
(38)
(507)
Machinery & equipment
(1,084)
(107)
43 27
21
11 (1,116)
Other property, plant and equipment
(287)
(39)
9
(48)
(338)
Assets in progress
-
-
-
-
-
-
DEPRECIATION/IMPAIRMENT
(1,893)
(187) (187)
78
38
(32)
(1,995)
PROPERTY, PLANT AND EQUIPMENT, NET
2,386
338
(13)
(41)
(148)
2,336
Including biological assets (1)
Movements in the year
Foreign currency gains and losses
Other movements 30.06.2018
30.06.2017 Acquisitions Allowances Disposals
€ million
Land
346
6
- - - - - - -
(1)
(8)
(1) 56 57 20
341
Buildings
1,206 1,882
25 52 62
(17) (57) (18)
(23) (52) (13)
1,247 1,883
Machinery & equipment
Other property, plant and equipment
713 146
763 233
Assets in progress
191
0
(5)
(99) (44) (10)
Advance on property, plant and equipment
38
10
-
0
5
GROSS VALUE
4,331
346
(93)
(102)
4,473
Land
(34)
- -
(3)
1
2
0 2
(34)
Buildings
(507)
(41)
14 53 17
10 29
(522)
Machinery & equipment
(1,116)
(1)
(101)
0 (1,136)
Other property, plant and equipment
(338)
0
(43)
7 0
1
(357)
Assets in progress
-
-
0
-
-
0
DEPRECIATION/IMPAIRMENT
(1,995)
(1)
(188) (188)
84 (8)
47
3 (2,049)
PROPERTY, PLANT AND EQUIPMENT, NET
2,336
345
(55)
(7)
2,424
168
PERNOD RICARD REGISTRATION DOCUMENT 2017/2018
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