2 Summary of Significant Accounting Policies (continued)
(i) Depreciation of property, plant and equipment
P roperty, plant and equipment are depreciated on a straight-line basis at rates which are calculated to write down
their cost to their estimated residual values at the end of their operational lives. Operational lives, residual values
and depreciation method are reviewed annually in the light of experience and changing circumstances, and adjusted
prospectively, if appropriate.
Freehold land, advance and progress payments are not depreciated.
Fully depreciated assets are retained in the financial statements until they are no longer in use. No depreciation is
charged after assets are depreciated to their residual values.