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Deutsche EuroShop - Annual Report 2006


Significant Accounting Policies

Property, plant and equipment

Property, plant and equipment is reported at cost less depreciation and, where applicable, impairment losses.

Properties constructed or developed for future use as investment property are initially reported as property, plant and equipment and then, following completion, as investment property. In the year under review, the properties under construction Stadt-Galerie Hameln, Stadt-Galerie Passau and Galeria Baltycka have been reported under property, plant and equipment, as they have not yet been valued.

Borrowing costs relating to the financing of property, plant and equipment are capitalised during the construction period. Maintenance measures relating to property, plant and equipment are recognised as an expense in the year in which they occur.

Operating and office equipment comprises office equipment, fittings and technical equipment belonging to Deutsche EuroShop AG, and is depreciated using the straight-line method over three to thirteen years. The method of depreciation and the depreciation period are reviewed annually at the end of each financial year.

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