TELEPERFORMANCE_Registration_document_2017

CONSOLIDATED FINANCIAL STATEMENTS

7.6 Notes to the consolidated financial statements

C. Operational activity

NOTE C.1 Property, plant and equipment

Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses (see accounting policy, notebA.3 Impairment ).

economic benefits of the item will flow to the Group and the cost of the item can be measured reliably. All costs of routine repairs and maintenance are recognized in the statement of income as an expense when incurred. Depreciation Depreciation is charged to the statement of income on a straight-line basis over the estimated useful life of each part of an item of property, plant and equipment, from the time it is ready for use. Improvements made to buildings held on an operating lease are depreciated over the shorter of the lease period and the useful life. The estimated useful lives are as follows:

Cost includes the asset’s directly attributable acquisition costs.

Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Leased assets Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Any other lease agreement is an operating lease. Such leased assets are not recognized in the Group’s statement of financial position. The Company has no real estate held under a finance lease agreement. Subsequent expenditure The Group recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an itemwhen that cost is incurred, if it is probable that the future

Buildings

20 to 25byears 3 to 5byears 3 to 10byears

Office and IT equipment

Other

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period. Land is not depreciated.

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