3.  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):  Property, plant and equipment, with the exception of land, are recorded at cost less accumulated depreciation  and any accumulated impairment losses. Land is carried at cost and is not depreciated.  Cost includes expenditures that are directly attributable to the acquisition of the asset.The cost of self-constructed  assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets  to a working condition for their intended use, the costs of dismantling and removing the items and restoring  the site on which they are located, and borrowing costs on qualifying assets. Purchased software that is integral  to the functionality of the related equipment is capitalized as part of that equipment. When significant parts of  an item of property, plant and equipment have different useful lives, they are accounted for as separate items  (major components) of property, plant and equipment. Construction-in-progress assets are capitalized during  construction and depreciation commences when the asset is available for use.  The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of  the item if it is probable that the future economic benefits embodied within the part will flow to the Company,  and its cost can be measured reliably.The carrying amount of the replaced part is derecognized.The costs of the  day-to-day servicing of property, plant and equipment are recognized in profit or loss as incurred.  Gains and losses on disposal of items of property, plant and equipment are determined by comparing the proceeds  from disposal with the carrying amount of the property, plant and equipment and are recognized in cost of sales  for assets used in production and in administration and selling expenses for all other assets.   Depreciation related to assets used in production is recorded in cost of sales while the depreciation of all other  assets is recorded in administration and selling expenses. Depreciation is calculated on a straight-line basis, after  taking into account residual values, over the estimated useful lives of each part of an item of property, plant and  equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits  embodied in the asset. Significant component of individual assets are assessed, and if a component has a useful life  that is different from the remainder of that asset, then that component is depreciated separately. The estimated  useful lives for the current and comparative periods are as follows:  Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain  that the Company will obtain ownership by the end of the lease term.  Depreciation methods, useful lives and residual values are reviewed at each financial year end and depreciation is  adjusted on a prospective basis, if necessary. Buildings and improvements  20 to 60 years Machinery and equipment  10 to 40 years Furniture and fixtures  5 to 10 years Rogers Sugar Inc. 46 Notes to CoNsolidated FiNaNCial statemeNts (In thousands of dollars except as noted and per share amounts) (e)  Property, plant and equipment: