Page 80 - Pobl Annual Report FY25

78 Annual Report 2025
Notes to the Financial Statements
for the year ended 31 March 2025
Improvements to housing properties
Where there are improvements to housing properties
that are expected to provide incremental future benefits,
these are capitalised and added to the carrying amount
of the property. Any works to housing properties which
do not replace a component or result in an incremental
future benefit are charged as expenditure in the
Statement of Comprehensive Income.
Property, plant and equipment –
non-housing properties
Other non-housing property, plant & equipment is held
at cost less accumulated depreciation and any
accumulated impairment losses.
Shared ownership properties
Shared ownership properties, including those under
construction, are split between fixed assets and current
assets. The split is determined by the percentage of the
property to be sold under the first tranche disposal,
which is shown on initial recognition as a current asset
within Stock, with the remainder classified as a fixed
asset within Property, plant and equipment.
Proceeds from first tranche disposals are accounted for
as turnover, whereas subsequent staircasing sales are
included in the calculation of profit or loss on disposal of
property, plant and equipment.
Depreciation
Shared Ownership
No depreciation is charged to shared ownership
properties.
Housing property, plant & equipment
Depreciation is charged to write down the cost of
housing properties to their estimated residual value, on
a straight-line basis, over their estimated useful
economic lives. The depreciable amount is assessed
on an annual basis and is original cost less residual
value. Component replacements are depreciated over
their useful economic lives and depreciation
commences in the year following commissioning of the
asset. There is a minimum capitalisation threshold of
£1,000.
Useful economic lives of components are as follows:
Kitchens 15-18 years
Boilers 15-20 years
Bathrooms 25-30 years
Windows/doors 35 years
Lifts 15-25 years
Roofs 50-75 years
Electrical works 25-30 years
Sprinklers 25-30 years
Solar panels 25-30 years
Solar batteries 10 years
Freehold Land is not depreciated. Housing property
structure is depreciated over a useful economic life of
50-150 years.
Non-housing property, plant & equipment
Depreciation is provided on all non-housing property,
plant and equipment, other than investment properties
and freehold land, at rates calculated to write off the
cost or valuation, less estimated residual value, of
each asset on a straight-line basis over its expected
useful life, as follows:
Freehold office properties 25 years
Leasehold property over term of the lease
Motor vehicles 2.5-4 years
Furniture and equipment 3-10 years
Office improvements
Computer equipment
5
4-5
years
years
Service chargeable assets
(in line with income)
3-20 years
Depreciation on non-housing fixed assets is charged
on a pro rata basis for the first and last year.
Intangible assets – computer software
The Group’s only intangible assets comprise computer
software and associated costs. This is recognised at
historic cost less accumulated amortisation and any
provision for impairment. Computer software is
amortised at rates calculated to write off the cost on a
straight-line basis over the expected useful life which
is usually five years.
Amortisation is charged to the Statement of
Comprehensive Income.
1.3. Summary of significant accounting policies (continued)