NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  (j)  Property, plant and equipment 2.3  Summary of significant accounting policies (cont’d) 2.  Basis of preparation and accounting policies (cont’d) (i)  Non-current assets held for sale or for distribution to equity holders of the parent and discontinued  operations (cont’d) Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held  for sale or as held for distribution. Assets and liabilities classified as held for sale or for distribution are presented separately as current items in the  statement of financial position. A disposal group qualifies as discontinued operation if it is: Discontinued operations are excluded from the results of continuing operations and are presented as a single  amount as profit or loss after tax from discontinued operations in the statement of profit or loss. Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment  losses, if any. Such cost includes the cost of replacing part of the property, plant and equipment and borrowing  costs for long-term construction projects if the recognition criteria are met. When significant parts of property,  plant and equipment are required to be replaced at intervals, the Group recognizes such parts as individual  assets with specific useful lives and depreciates them accordingly. Likewise, when a major inspection is  performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the  recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as  incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in  the cost of the respective asset if the recognition criteria for a provision are met. Freehold land has an unlimited useful life and therefore is not depreciated. Asset under construction included  in plant and equipment are not depreciated as these assets are not yet ready for intended use. Depreciation is  calculated on a straight-line basis over the estimated useful life of the assets as follows: The carrying values of property, plant and equipment are reviewed for impairment when events or changes in  circumstances indicate that the carrying value may not be recoverable. China Yuchai International Limited | Annual Report 2013 47 l A component of the Group that is a cash-generating unit (“CGU”) or a group of CGUs l  Classified as held for sale or distribution or already disposed in such a way, or l  A major line of business or major geographical area Freehold buildings : 50 years Leasehold land, buildings and improvements : Shorter of 15 to 50 years or lease term Plant and machinery : 3 to 20 years Office furniture, fittings and equipment : 3 to 20 years Motor and transport vehicles : 3.5 to 15 years