Property Plant and Equipment Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses. The cost of land is not depreciated. Cost includes the cost of acquiring land and buildings, directly attributable development costs, interest at the average cost of borrowing for the development period, and expenditure incurred in respect of improvements which comprise the modernisation and extension of existing properties. Component Accounting The association accounts for its expenditure on housing properties using component accounting. Under component accounting, the housing property is divided into those major components which are considered to have substantially different lives. These components are then depreciated over their individual useful lives as follows: Land Infinite House structure 100 years Lease Over the period of lease Roof structure and covering 70 years Windows 30 years Kitchen 20 years Lifts 20 years Central heating boilers 15 years Bathrooms 30 years Electrics 40 years Where a separately identified and depreciated component is replaced, the carrying value of the component is expensed as accelerated depreciation and the cost of the replacement component capitalised. All depreciation is provided on a straight-line basis. Leases are written off over the period of the lease. Housing properties under construction are stated at cost less any impairment provision required. Annual Report 2021-2022 53
RkJQdWJsaXNoZXIy NDA3NTg=