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39NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2012(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)c) Principles of consolidationThe consolidated financial statements comprise the financial statements of Guardian Media Limited (%u201cthe Company%u201d) and its subsidiary, after the elimination of all inter-company transactions, balances and unrealized gains on inter-company transactions. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control until such time control ceases. Control is achieved where the parent company has the power to govern the financial and operating policies of an investee so as to obtain benefits from its activities.d) Property, plant and equipmentIt is the Group%u2019s policy to account for property, plant and equipment at cost, net of accumulated depreciation and/or 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. All other repairs and maintenance costs are recognised in the statement of comprehensive income.Depreciation is provided on the straight line basis at rates estimated to write-off the assets over their expected useful lives. The estimated useful lives of assets are reviewed periodically, taking account of commercial and technological obsolescence as well as normal wear and tear, and the depreciation rates are adjusted if appropriate. Land and capital work in progress are not depreciated.Depreciation is provided at the following rates:-Freehold buildings 2%Plant, station equipment and machinery 4% - 33%Vehicles 25%Furniture, fixtures and office equipment 10% - 25%An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of asset) is included in the statement of comprehensive income in the year the asset is derecognised.Guardian_Media_Annual_Report2012.indd 39 4/17/13 7:31 PM