Almirall uses the straight-line method to depreciate its property, plant & equipment. Almirall has four PP&E categories: (1) land, (2) buildings, (3) machinery & equipment, and (4) furniture & fixtures. The buildings were purchased on January 3, 2017 for $4,000,000, have an estimated useful life of 25 years and an estimated residual value of $500,000. The company elected the revaluation model under IAS 16 to determine the carrying value of its buildings subsequent to acquisition.

In January 2018, the building was appraised, and was determined to have a fair value of $4,628,000. There was no change in the estimated useful life or residual value of the building. Almirall determined that a new appraisal was not warranted at December 31, 2018. Almirall uses the historical cost method for all other categories of PP&E.