RBS 2012 Annual Report Download - page 428

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Notes on the consolidated accounts continued
18 Property, plant and equipment continued
Investment properties are valued to reflect fair value, that is, the market
value of the Group's interest at the reporting date excluding any special
terms or circumstances relating to the use or financing of the property
and transaction costs that would be incurred in making a sale. Observed
market data such as rental yield, replacement cost and useful life, reflect
relatively few transactions involving property that is not necessarily
identical to property owned by the Group.
Valuations are carried out by qualified surveyors who are members of the
Royal Institution of Chartered Surveyors, or an equivalent overseas body.
The valuation as at 31 December 2012 for a significant majority of the
Group's investment properties was undertaken with the support of
external valuers.
The fair value of investment properties includes £186 million of
depreciation since purchase (2011 - £146 million; 2010 - £248 million).
Rental income from investment properties was £267 million (2011 - £270
million; 2010 - £279 million). Direct operating expenses of investment
properties were £125 million (2011 - £110 million; 2010 - £64 million).
Property, plant and equipment, excluding investment properties, include
£35 million (2011 - £186 million; 2010 - £298 million) assets in the course
of construction.
19 Prepayments, accrued income and other assets
2012 2011 2010
£m £m £m
Prepayments 904 1,123 1,529
Accrued income 526 672 1,186
Deferred expenses 57 502 568
Pension schemes in net surplus (see Note 4) 144 188 105
Other assets 6,189 8,491 9,188
7,820 10,976 12,576