BBC World Services plant and machinery and furniture and fittings were revalued at 1 April 1996 based
on the estimated current replacement cost of the assets, adjusted for service potential. Following the
introduction of FRS 15:Tangible Fixed Assets, BBC World Service has retained these revalued assets at
their valuation as adjusted for depreciation. BBC World Service does not plan to revalue these assets
on an ongoing basis.
Historical cost basis
The net book value of tangible fixed assets included in the above table determined on an historical cost
basis is as follows:
Net book value
Included within fixed assets is £24 million at cost relating to a relay station in Thailand. These assets are
transferable to the Royal Thai Government in return for the payment of a nominal sum. BBC World
Service will retain the right to repurchase the assets, should the operation cease, for a similar nominal
sum. The use of these assets is not affected by this transaction and therefore they will continue to be
carried at cost less attributable depreciation in the balance sheet.
Land and buildings at net book value comprise:
The members of the Management Board are satisfied that there has been no impairment in the
carrying values of freehold properties at the balance sheet date.
Land and buildings include freehold land at a cost of £4.2 million (2002 £4.2 million) which is not