75 Accounting Policies Sales are recorded as income upon delivery. Licence fee income is recorded on the basis of amounts earned during the year. Contract work in progress for the account of third parties is recorded under the percentage of completion method and is recorded in the balance sheet under stocks after a conservative evaluation of each contract. Research and development expenditure is charged as incurred. This item includes significant non-recurring items, which are not directly attributable to the normal running of the company, including certain relatively substantial profits or losses arising from disposals, special write-downs and depreciation, and provisions and any reversal of such items. Share of the profit or loss of the subsidiary and associated companies is recorded in the Parent CompanyGLYPH<213>s profit and loss account in accordance with the accounting policies of the Carlsberg Group. Adjustments are made for changes in unrealised intercompany profits. Share of the calculated tax charge of these companies is recorded under corporation tax. The Parent Company is taxed jointly with its wholly-owned Danish subsidiaries. The aggregate tax charge of the jointly-taxed Danish companies is allocated to the individual companies in propor- tion to their taxable incomes (the full allocation method). Tangible fixed assets are recorded at purchase price or cost less accumulated depreciation. Value adjustments have taken place in certain foreign subsidiary and associated companies in accord- ance with local accounting practice. The draught beer equipment of Carlsberg-Tetley is recorded as a basic stock stated at cost. Depreciation is provided under the straight-line method over the estimated economic lives of the assets: Intangible fixed assets are charged against income in the year of acquisition except for Group goodwill. In the event that intangible fixed assets are taken over in connection with the acquisition of a company, the amount is included in the computation of goodwill. Deferred tax is provided for all temporary differ- ences between accounting and tax values. Deferred tax assets are included in the balance sheet at the expected realisable value. Provisions are not made for deferred tax, which may arise from the realisation of shares at book value. Corporation tax for the year, comprising tax payable for the year and adjustments in deferred tax, is recognised in the profit and loss account at the share attributable to profit for the year. Tax on items taken directly to equity is recognised corre- spondingly. Buildings 20 - 50 years Plant and machinery 10 - 20 years Other fixtures and fittings, tools and equipment including soft drink machines 3 - 10 years Corporation tax Share of subsidiary and associated compa- niesGLYPH<213> profit or loss Tangible fixed assets Special items Intangible fixed assets Research and development expenditure Deferred tax Turnover