SOL MELIA ANNUAL REPORT 00 COMP

ACCOUNTING PRINCIPLES
The amount of the fixed assets revaluation was established by applying, to the purchase or production cost and to the
corresponding annual amortisation charges considered as deductible expenses for fiscal purposes, coefficients in view of the
purchase year of the items and the figures thereby obtained were reduced by 40% to take into account the financing conditions,
in compliance with such rulings.
The annual amortisation/depreciation charge is calculated on the straight-line method over the estimated useful lives of the
different assets, which are as follows:
Buildings
Installations
Machinery
Furniture
Software
Vehicles
30-50 years
8-18 years
8-18 years
10-15 years
5-8 years
6-10 years
5.8 Tangible fixed assets
Tangible fixed assets are stated at acquisition price which includes any additional expenses incurred until the item is put to
use, and increased by the legal revaluations commented on in Note (11). No financing cost is included. In 1996 tangible
fixed assets were revalued in accordance with Royal Decree Law 7/1996 of June 7th, (See Notes 11 and 18).
The amount of the fixed assets revaluation was established by applying, to the purchase or production cost and to the
corresponding annual depreciation charges considered as deductible expenses for fiscal purposes, coefficients in view of the
purchase year of the items and the figures thereby obtained were reduced by 40% to take into account the financing conditions
in compliance with such rulings.
Repairs which do not represent an extension of the useful life and maintenance expenses are charged directly to the profit
and loss account. Costs which prolong or improve the useful life of the asset are capitalised as an increase in their value.
The Group’s tangible fixed assets are depreciated using the straight-line method over the estimated useful life of the assets
which are as follows:
Buildings
Installations
Machinery
Furniture
Software
Vehicles
Other fixed assets
30-50 years
8-18 years
8-18 years
10-15 years
5-8 years
6-10 years
4-8 years
The net book value of tools and fittings corresponds to the value as per stocktakings carried out in the different centres at year end.
The revaluations and capital gains attributable to tangible fixed asset items are depreciated following the same criteria applied
to the revalued and/or affected items.
S OL
M ELIÁ
A NNUAL R EPORT 2000
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