Property, plant and equipment are measured at the higher of amortised cost less depreciation considered necessary for business reasons, with the exception of land and works of art, which are recognised at cost.

The right-of-use assets to be capitalised in connection with leases come under property, plant and equipment. Improvements to leased properties are capitalised and depreciated in line with the term of the lease. The costs of any maintenance and repairs that do not add value are charged directly to the income statement.

With the exception of additional impairment necessary for business reasons, depreciation is charged on a straight-line basis over uniform useful lives established within the Group. The following amortisation periods apply:

• Buildings: 40 years

• Installations and ancillary facilities: 3–25 years

• Technical equipment and machinery: 3–25 years

• IT equipment: 3–5 years

• Furnishings: 5–10 years

• Motor vehicles: 4–10 years

• Right-of-use assets from leases: Term of underlying lease asset

Impairment tests are performed on property, plant and equipment if events or changes in circumstances indicate that the carrying amounts may be impaired. The determination of their impairment is based on estimates and assumptions made by Group Management and the Board of Directors. As a result, it is possible that the actual values realised may deviate from these estimates. If the carrying amount is higher than the recoverable amount, an impairment is made in the income statement to the value which appears to be recoverable based on the discounted, anticipated future income, or a higher net sales value.