Change in group depreciation policy

RNS Number : 6894U
Capital Lease Aviation PLC
20 October 2014
 



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 

 

 

Enquiries:

 

Capital Lease Aviation PLC

Jeff Chatfield, Executive Chairman 

 

+65 9735 4151

Nominated Adviser

James Joyce, W H Ireland                   

 

+44 207 220 1666

 

Company Stockbroker

W H Ireland

 

+44 207 220 1666

Blytheweigh

Tim Blythe / Eleanor Parry                    

+44 207 138 3204


 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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