Page 79 - Statement of Intent 2015/16

which the hedged forecast transaction affects the statement of comprehensive income. The ineffective part of any gain or loss is recognised immediately in the statement of comprehensive income.
When a hedging instrument expires or is sold, terminated or exercised, or the entity revokes designation of the hedge relationship but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in equity is recognised immediately in the statement of comprehensive income.
Hedge of monetary assets and liabilities
Where a derivative financial instrument is used to hedge the foreign exchange exposure of a recognised monetary asset or liability, no hedge accounting is applied and any gain or loss on the hedging instrument is recognised in the statement of comprehensive income.
Property, plant and equipment
Classes of property, plant and equipment
The major classes of property, plant and equipment are as follows:
 Freehold land
 Freehold buildings
 Plant, equipment and vehicles
 Work in progress.
Owned assets
Except for land and buildings and the assets vested from the Hospital and Health Service (see below), items of property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses. The cost of self-constructed assets includes the cost of materials, direct labour, any costs of dismantling and removing the items and restoring the site on which they are located, and an appropriate proportion of direct overheads.
Land and buildings are revalued to fair value as determined by an independent registered valuer, with sufficient regularity to ensure the carrying amounts are not materially different to fair value, and at least every five years. Any increase in value of a class of land and buildings is recognised directly to equity unless it offsets a previous decrease in value recognised in the statement of comprehensive income. Any decrease in value relating to a class of land and buildings is debited directly to the revaluation reserve, to the extent that it
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