PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

Disclosure of property, plant and equipment [text block] [Abstract]

Disclosure of property, plant and equipment [text block]

NOTE 27: PROPERTY, PLANT AND EQUIPMENT

	Investment properties £m			Premises £m			Equipment £m			Operating lease assets £m			Right-of- use asset1 £m			Total £m
Cost or valuation:
At 1 January 2018		3,699			1,791			5,068			6,528						17,086
Exchange and other adjustments		–			–			(6	)		11						5
Additions		–			72			519			1,755						2,346
Expenditure on investment properties (see below)		143			–			–			–						143
Change in fair value of investment properties (note 7)		139			–			–			–						139
Disposals		(211	)		(647	)		(574	)		(1,540	)					(2,972	)
At 31 December 2018		3,770			1,216			5,007			6,754						16,747
Adjustment on adoption of IFRS 16 (note 55)		–			–			–			–			1,716			1,716
Balance at 1 January 2019		3,770			1,216			5,007			6,754			1,716			18,463
Exchange and other adjustments		16			3			5			(4	)		–			20
Additions		–			121			522			1,693			196			2,532
Expenditure on investment properties (see below)		73			–			–			–			–			73
Change in fair value of investment properties (note 7)		(108	)		–			–			–			–			(108	)
Disposals		(198	)		(245	)		(238	)		(1,694	)		(27	)		(2,402	)
At 31 December 2019		3,553			1,095			5,296			6,749			1,885			18,578
Accumulated depreciation and impairment:
At 1 January 2018		–			728			2,125			1,506						4,359
Exchange and other adjustments		–			1			(8	)		6						(1	)
Depreciation charge for the year		–			121			715			1,016						1,852
Disposals		–			(634	)		(534	)		(595	)					(1,763	)
At 31 December 2018		–			216			2,298			1,933						4,447
Exchange and other adjustments		–			–			(1	)		(36	)		1			(36	)
Depreciation charge for the year		–			125			715			1,008			216			2,064
Disposals		–			(225	)		(180	)		(595	)		(1	)		(1,001	)
At 31 December 2019		–			116			2,832			2,310			216			5,474
Balance sheet amount at 31 December 2019		3,553			979			2,464			4,439			1,669			13,104
Balance sheet amount at 31 December 2018		3,770			1,000			2,709			4,821			–			12,300

1 Primarily premises.

Expenditure on investment properties is comprised as follows:

	2019 £m		2018 £m
Acquisitions of new properties		21		81
Additional expenditure on existing properties		52		62
		73		143

Rental income of £191 million (2018: £197 million) and direct operating expenses arising from properties that generate rental income of £32 million (2018: £23 million) have been recognised in the income statement.

Capital expenditure in respect of investment properties which had been contracted for but not recognised in the financial statements was £7 million (2018: £33 million).

The table above analyses movements in investment properties, all of which are categorised as level 3. See note 50 for details of levels in the fair value hierarchy.

At 31 December the future minimum rentals receivable under non-cancellable operating leases were as follows:

	2019 £m		2018 £m
Receivable within 1 year		978		1,095
1 to 2 years		620		681
2 to 3 years		312		332
3 to 4 years		102		113
4 to 5 years		12		30
Over 5 years		2		6
Total future minimum rentals receivable		2,026		2,257

Equipment leased to customers under operating leases primarily relates to vehicle contract hire arrangements.