Diageo is a major international company located in London. A recent annual report contained the following information concerning its accounting policies.

Required:
Compare accounting for fixed assets and depreciation in England with procedures used in this country.

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Fixed assets and depreciation Fixed assets are stated at cost or at professional valuation. Cost includes interest, net of any tax relief. on capital employed in major developments. No depreciation is provided on freehold land. Other leaseholds are depreciated over the unexpired period of the lease. All other buildings, plant, equipment, and vehicles are depreciated to residual values over their estimated useful lives within the following ranges: Industrial buildings Plant and machinery Fixtures and fittings 25 to 100 years 3 to 25 years 3 to 17 years