SYT » Topics » (2) Property, Plant and Equipment

This excerpt taken from the SYT 20-F filed Mar 1, 2006.

(2) Property, Plant and Equipment

In accordance with IAS 36, impairment losses recorded for property, plan and equipment in prior periods are reversed if impairment testing in subsequent periods re-assesses the asset’s recoverable amount as higher than estimated when the original loss was recorded. US GAAP, in accordance with SFAS 144, does not permit the subsequent reversal of impairment losses. Reversals of impairment losses of US$7 million recognized for IFRS in 2005 have not been recognized for US GAAP.

This excerpt taken from the SYT 20-F filed Mar 16, 2005.

Property, plant and equipment

Property, plant and equipment have been valued at acquisition or production costs, less accumulated depreciation and any impairment losses. Depreciation is charged on a straight-line basis to the income statement, over the following estimated useful lives:

Buildings 20 to 40 years
Machinery and equipment 10 to 20 years
Furniture and vehicles 5 to 10 years
Computer hardware 3 to 7 years

Land is valued at acquisition cost except if held under long-term lease arrangements, when it is amortized over the life of the lease. The land held under long-term lease agreements relates to upfront payments to lease land on which certain of Syngenta’s buildings are located. The buildings related to the long-term lease agreements are depreciated over the lesser of the life of the lease and that of the related assets. Additional costs, which extend the useful life of the property, plant and equipment, are capitalized and depreciated over the revised remaining useful life of the asset. When components of an asset are replaced, a disposal of the replaced component is accounted for and the new component is capitalized and depreciated over the shorter of its own useful life and that of the asset of which it is part. Financing costs associated with the construction of property, plant and equipment are not capitalized. Property, plant and equipment which are financed by leases giving rights to use the assets as if owned are capitalized at their estimated cost (at the lower of fair value and the present value of minimum lease payments) at the inception of the lease, and depreciated in the same manner as other property, plant and equipment over the lesser of the remaining lease term or estimated useful life.


Mar 1, 2006
Mar 16, 2005
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