Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Notes to the financial statements  for the financial year ended 31 March 2014  continued  Note 1  Summary of significant accounting policies  continued (xiv) Impairment  continued Interests in associates and joint ventures  (xv) Life insurance business  Disclosure  Investment assets  Restriction on assets  Policy liabilities  (xvi) Property, plant and equipment  In the case of debt securities classified as available for sale,  observable data that relates to loss events are considered,  including adverse changes in the payment status of the issuer  and national or local economic conditions that correlate with  defaults on those assets. In addition, impairment may be appropriate when there is  evidence of deterioration in the financial condition of the  investee, industry and sector performance, operational and  financing cash flows or changes in technology. When the fair value of an available for sale financial asset is  less than its initial carrying amount and there is objective  evidence that the asset is impaired, the cumulative loss  recognised directly in OCI is removed from equity and  recognised in the income statement. Impairment losses recognised in the income statement for  equity securities classified as available for sale are not  subsequently reversed through the income statement.  However impairment losses recognised for debt investment  securities classified as available for sale are subsequently  reversed through the income statement if the fair value increases  and the increase can be objectively related to an event after the  impairment loss was recognised in the income statement.  The Consolidated Entity performs an assessment at each  balance date to determine whether there is any objective  evidence that its interests in associates and joint ventures  are impaired. The entire carrying amount of each investment  in associate and joint venture is considered in the assessment.  The main indicators of impairment are as for equity securities  classified as available for sale, disclosed above.  If there is an indication that an investment in an associate or  joint venture may be impaired, then the entire carrying amount  of the investment in associate or joint venture is tested for  impairment by comparing the recoverable amount (higher  of value in use and fair value less costs to sell) with its  carrying amount. Impairment losses recognised in the income  statement for investments in associates and joint ventures are  subsequently reversed through the income statement if there  has been a change in the estimates used to determine  recoverable amount since the impairment loss was recognised.  The life insurance business is comprised of insurance contracts  and investment contracts as defined in AASB 4 Insurance  Contracts. The following are key accounting policies in relation  to the life insurance business: The consolidated financial statements include the assets,  liabilities, income and expenses of the life insurance business  conducted by a subsidiary of the Company in accordance with  AASB 139 Financial Instruments:Recognition and  Measurement, and AASB 1038 Life Insurance Contractswhich  apply to investment contracts and assets backing insurance  liabilities, respectively. These amounts represent the total life  insurance business of the subsidiary, including underlying  amounts that relate to both policyholders and shareholders of  the life insurance business.  Investment assets are carried at fair value through profit or  loss. Fair values of quoted investments in active markets  are based on current bid prices. If the relevant market is  not considered active (and for unlisted securities), fair value  is established by valuation techniques, including recent arm’s  length transactions, discounted cash flow analysis, option  pricing models and other valuation techniques commonly used  by market participants. Changes in fair values are recognised in  the income statement in the period in which the changes occur.  Investments held in the Life Funds can only be used within  the restrictions imposed under the Life InsuranceAct 1995. The  main restrictions are that the assets in a fund can only be used  to meet the liabilities and expenses of the fund, acquire  investments to further the business of the fund or pay  distributions when solvency and capital adequacy requirements  allow. Shareholders can only receive a distribution when the  capital adequacy requirements of the Life Insurance  Act 1995 have been met.  Life insurance liabilities are measured as the accumulated  benefits to policyholders in accordance with AASB 139  and AASB 1038, which apply to investment contracts and  assets backing insurance liabilities, respectively.  Property, plant and equipment are stated at historical cost  less accumulated depreciation and accumulated impairment  losses, if any. Property, plant and equipment are reviewed for  impairment at each reporting date. Historical cost includes  expenditure directly attributable to the acquisition of the asset.  Property, plant and equipment includes assets leased out under  operating leases.  Depreciation on assets is calculated on a straight-line basis to  allocate the difference between cost and residual values over  their estimated useful lives, at the following rates:  (1) Where remaining lease terms are less than five years, leasehold  improvements are depreciated over the remaining lease term. Useful lives and residual values are reviewed annually  and reassessed in light of commercial and technological  developments. If an asset’s carrying value is greater than  its recoverable amount, the carrying amount is written down  immediately to its recoverable amount. Adjustments arising  110  Buildings  2.5 to 3.3 per cent  Furniture, fittings and leasehold improvements (1) 10 to 20 per cent  Equipment 33 to 50 per cent Infrastructure assets  5 to 20 per cent  Aviation  2 to 4 per cent  Meters  5 to 10 per cent  Rail cars  2 to 3 per cent  Other operating lease assets  2 to 50 per cent 