SECTION 2.4  Intangible assets and property, plant and equipment 2.4  ACCOUNTING POLICIES Cost  Intangible assets and property, plant and equipment  are initially recognised at cost and subsequently  measured at cost less accumulated amortisation,  depreciation and impairment losses.  Cost comprises the purchase price and any costs directly  attributable to the acquisition until the date when the  asset is available for use. The cost of self-constructed  assets comprises direct and indirect costs of materials,  components, sub-suppliers, wages and salaries, and  capitalised borrowing costs on specific or general bor- rowing attributable to the construction of the asset. Research costs are recognised in the income state- ment as they are incurred. Development costs are  recognised as intangible assets if the costs are  expected to generate future economic benefits.  For assets acquired in business combinations, includ- ing trademarks and property, plant and equipment,  cost at initial recognition is determined by estimat- ing the fair value of the individual assets in the  purchase price allocation. Goodwill is only acquired  in business combinations and is measured by the  purchase price allocation. Goodwill is not amortised.  CO$_{2}$ emission rights are measured at cost at the date  of allocation (i.e. normally DKK 0), while acquired  rights are measured at cost. A liability is recognised  (at fair value) only if actual emissions of CO$_{2}$ exceed  allocated levels based on the holding of rights. The present value of estimated liabilities related to  dismantling and removing the asset and restoring  the site on which the asset is located is added to the  cost of self-constructed assets if the liabilities are  provided for.  Carlsberg Group Annual Report 2013 Where individual components of an item of prop- erty, plant and equipment have different useful lives,  they are accounted for as separate items and are  depreciated separately. The cost of assets held under finance leases is  stated at the lower of fair value of the assets and  the present value of the future minimum lease pay- ments. For the calculation of the net present value,  the interest rate implicit in the lease or an approxi- mation thereof is used as the discount rate. Subsequent costs, e.g. in connection with replace- ment of components of property, plant and equip- ment, are recognised in the carrying amount of the  asset if it is probable that the costs will result in  future economic benefits for the Group. The replaced  components are derecognised from the statement  of financial position and recognised as an expense  in the income statement. Costs incurred for ordinary  repairs and maintenance are recognised in the  income statement as incurred. The useful life and the residual value are determined  at the acquisition date and reassessed annually.  If the residual value exceeds the carrying amount,  depreciation is discontinued. Amortisation and depreciation are recognised on a straight-line basis over the expected useful life of  the assets, taking into account any residual value.  The expected useful life and residual value are de- termined based on past experience and expectations  of the future use of assets.  The basis of depreciation is calculated on the basis of  the cost less the residual value and impairment losses.  Useful life, amortisation and depreciation  The expected useful life for the various items is as  follows:  Amortisation and depreciation are recognised in the  income statement under cost of sales, sales and  distribution expenses, and administrative expenses  to the extent that they are not included in the cost  of self-constructed assets. Impairment losses of a non-recurring nature are  recognised in the income statement under special  items. Operating lease payments are recognised in the  income statement on a straight-line basis over the  lease term. Grants and funding received for the acquisition of  assets and development projects are recognised  in the statement of financial position as deferred  income and charged to the same line item in the  income statement as the depreciation of the assets  for which the grants and funding were awarded. Trademarks with finite useful life Normally 20 years Software etc.  Normally 3-5 years. Group- wide systems developed  as an integrated part of a  major business development  programme: 5-7 years Delivery rights Depending on contract; if no  contract term has been agreed,  normally not exceeding 5 years Customer  agreements/  relationships Depending on contract with the  customer; if no contract exists,  normally not exceeding 20 years CO$_{2}$ rights Production period where utilised Buildings 20-40 years Technical installations 15 years Brewery equipment 15 years Filling and bottling equipment 8-15 years Technical installations in warehouses 8 years On-trade and distribution equipment 5 years Fixtures and fittings, other plant and equipment 5-8 years Returnable packaging 3-10 years Hardware 3-5 years Land Not depreciated Impairment losses  Operating leases  Government grants and other funding  Consolidated financial statements SECTION 2: ASSET BASE AND RETURNS 84