74
2013
Annual Report
10
The estimated useful lives of property, plant and equipment are as follows:
Buildings, technical installations and machinery
Public works
20-40
Fibre optic cables
10-15
Equipment
3-10
Other internal installations and technical facilities
15-20
Other installations, equipment and furniture
6-7
Information technology equipment
5-7
Motor vehicles
5
The majority of property, plant and equipment reflects investments to roll-out the Company's
telecommunications network throughout the Autonomous Region of the Basque Country.
The Company reviews the residual value and useful lives of the assets, as well as their classification as under
construction, and makes any necessary adjustments at each reporting date.
When an asset’s carrying amount exceeds its estimated recoverable amount, the carrying amount is written
down immediately to the recoverable amount.
Accounting profits or losses on the sale of property, plant and equipment are calculated as the difference
between the amount obtained on the sale, net of selling costs, and the carrying amount of the item sold, and
recognised in the income statement in the year the sale takes place.
Impairment losses or reversals of impairment losses, if the circumstances in which they were recognised no
longer exist, are recognised as an expense or income, respectively, in the income statement.
3.3.
Interest costs
Finance costs that are directly attributable to the acquisition or construction of assets which will not be
available for use for more than one year are included in the cost of the asset until it becomes available for use.
3.4.
Impairment losses on non-financial assets
Non-financial assets are tested for impairment provided that an event or change in circumstances indicates
that their carrying amount might not be recoverable. An impairment loss is recognised when the asset’s
carrying amount exceeds its recoverable amount, which is the higher of fair value less costs to sell and value in
use. Impairment losses are reviewed when circumstances indicate that they should be reversed.
For the purposes of assessing impairment, assets are grouped together at the lowest levels for which there are
separately identifiable cash flows (cash-generating units).
