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Notes to the consolidated financial statements (continued)

Note 8 - Property, plant and equipment
EUR million
 
Land and Buildings
Other fixtures and fittings, tools
and equipment
Leasehold
improve-ments
Total
Cost at 1 January
5.1
22.9
2.5
30.5
Exchange adjustment
0.0
-0.3
0.0
-0.3
Additions for the year
-
2.2
0.8
3.0
Disposals for the year
-
-1.0
-
-1.0
Cost at 31 December
 
5.1
23.8
3.3
32.2
 
 
 
 
Depreciation at 1 January
-3.4
-17.5
-1.7
-22.6
Exchange adjustment
0.0
0.2
0.0
0.2
Depreciation for the year
-0.2
-1.9
-0.3
-2.4
Reversal of depreciations on disposals
-
0.7
-
0.7
Depreciation at 31 December
 
-3.6
-18.5
-2.0
-24.1
 
 
 
 
Carrying amount at 31 December 2023 
1.5
5.3
1.3
8.1
Carrying amount of lease assets included in Other fixtures and fittings, tools and equipment at 31 December 2023 amounts to EUR 0.5 million.
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:
- Production buildings 30-50 years
- Other buildings 30-50 years
- Other fixtures and fittings, tools and equipment 3-5 years
- Leasehold improvements 5-10 years
The fixed assets’ residual values are determined at nil. Depreciation period and residual value are reassessed annually.
The carrying amounts of intangible and tangible assets are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is written down to its lower recoverable amount.