Last checked at 20 Oct 2014 07:00
AVAP: RNS
CLA: RNS
20 October 2014
CAPITAL LEASE AVIATION PLC
("CLA" or the "Company")
Change in group depreciation policy
In line with the policy announced by Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, Capital Lease Aviation (AIM: CLA) announces that the board of the company has resolved to modify its depreciation policy for aircraft. This change was prompted by a recognition that aircraft technology is changing rapidly with an impact on aircraft useful economic lives.
Effective 1 July 2014, the directors revised the depreciation policy of Capital Lease Avation PLC (LSE: CLA). The new depreciation policy can be briefly summarised as follows:
The company will depreciate new aircraft over a useful life of 25 years to an estimated residual value based on 15% of new cost. In the case that the company buys second hand aircraft, it will depreciate the cost of the aircraft over the remaining period to 25 years from the date of manufacture to estimated scrap value. This estimated value is to be based on 3rd party appraisers' values. Fully depreciated assets are retained in the financial statements until they are no longer in use.
The Company will continue to review the book values of its aircraft for impairment purposes on a periodic basis.
This change will bring the Company's policy for depreciation of aircraft into line with many of its aircraft leasing counterparts.
-ENDS-
More information on Capital Lease Aviation PLC can be seen at: www.cl-aviation.com
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