RBS 2004 Annual Report Download - page 162

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Notes on the accounts
Notes on the accounts continued
20 Tangible fixed assets Long Short Computers Assets on
Freehold leasehold leasehold and other operating
premises premises premises equipment leases Total
£m £m £m £m £m £m
Cost or valuation:
At 1 January 2004 5,217 1,346 655 2,911 7,548 17,677
Currency translation and other adjustments (18) — (10) (41) (185) (254)
Reclassifications 1 (5) (5) 9 — —
Acquisition of subsidiaries 152 32 41 133 487 845
Additions 589 21 212 691 2,841 4,354
Disposals and write-off of fully depreciated assets (302) (21) (48) (136) (1,352) (1,859)
Revaluation adjustments 16 2 — — — 18
At 31 December 2004 5,655 1,375 845 3,567 9,339 20,781
Consisting of:
At valuation – 2004 2,754 1,129———3,883
At valuation – 2003 and prior 821 134———955
At cost 2,080 112 845 3,567 9,339 15,943
5,655 1,375 845 3,567 9,339 20,781
Accumulated depreciation and amortisation:
At 1 January 2004 407 94 250 1,805 1,194 3,750
Currency translation and other adjustments (1) 3 (3) (17) (29) (47)
Reclassifications — — (2) 2 — —
Acquisition of subsidiaries — 5 — 14 28 47
Disposals and write-off of fully depreciated assets (19) (2) (4) (56) (251) (332)
Charge for the year 60 11 42 355 639 1,107
Revaluation adjustments (19) (19) — — — (38)
At 31 December 2004 428 92 283 2,103 1,581 4,487
Net book value at 31 December 2004 5,227 1,283 562 1,464 7,758 16,294
Net book value at 31 December 2003 4,810 1,252 405 1,106 6,354 13,927
On the historical cost basis, the Group’s freehold and long leasehold premises would have been included at £6,249 million
(2003 – £5,886 million).
Freehold and long leasehold properties are revalued on a rolling basis, each property being valued at least every five years.
Interim valuations outwith the five year cycle are carried out on properties where there is an indication that their value has
changed significantly, given market conditions. The directors are not aware of any material change in the valuation of the
Group’s properties and therefore no additional interim valuations were required.
Properties occupied by the Group are valued on the basis of Existing Use Value, except for certain specialised properties which
are valued on a Depreciated Replacement Cost basis. Investment properties and properties to be disposed of are valued to
reflect Open Market Value. Valuations are carried out by internal and external qualified surveyors who are members of the Royal
Institution of Chartered Surveyors or, in the case of some overseas properties, locally qualified valuers.
2004 2003
Net book value: £m £m
Land and buildings occupied for own use 2,768 2,391
Investment properties 3,715 3,628
Properties under development 570 429
Properties to be disposed of 19 19
7,072 6,467
Net book value of assets held under finance leases 18 90
Depreciation for the year of assets held under finance leases 2 20
Contracts for future capital expenditure not provided for in the accounts at the year end
Premises and equipment 406 104
Assets on operating leases 196 498
602 602