Property, Plant and Equipment Accounting Policy
Property, plant and equipment (which include certain mine development costs, pre-stripping costs and assets under construction) are carried at cost (which includes all expenditures directly attributable to bringing the asset to the location and installing it in working condition for its intended use) less accumulated depreciation less any recognized impairment loss. The cost of property, plant and equipment is reduced by the amount of related investment tax credits to which Potash Corp. is entitled. Costs of additions, betterments, renewals and borrowings during construction are capitalized. Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to ready for their intended use are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. The capitalization rate is based on the weighted average interest rate on all of Potash Corp.'s outstanding third-party debt. All other borrowing costs are charged through finance costs in the period in which they are incurred. Each part of an item of property, plant and equipment with a cost that is significant in relation to the item's total cost is depreciated separately. When the cost of replacing part of an item of property, plant and equipment is capitalized, the carrying amount of the replaced part is derecognized. The cost of major inspections and overhauls is capitalized and depreciated over the period until the next major inspection or overhaul. Maintenance and repair expenditures that do not improve or extend productive life are expensed in the period incurred.
Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset, and is recognized in operating income.
Source: Potash Corp. of Saskatchewan Inc., Annual Report
Property, Plant and Equipment Disclosure
You have visited 10 password protected pages for free. Others contain data covered by 
.
Sign Up Now to get full access to whole website and cut out all advertisements.
Potash Corp. of Saskatchewan Inc., Statement of Financial Position, Property, Plant and Equipment
Source: Based on data from Potash Corp. of Saskatchewan Inc. Annual Reports
| Item |
Description |
The company |
| Land and improvements |
Real estate assets held for productive use and depreciable assets that are an addition or improvement to real estate held for productive use. |
Potash Corp. of Saskatchewan Inc.'s land and improvements declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
| Buildings and improvements |
Carrying amount as of the balance sheet date of long-lived, depreciable assets that include building structures held for productive use including any addition, improvement, or renovation to the structure, such as interior masonry, interior flooring, electrical, and plumbing. |
Potash Corp. of Saskatchewan Inc.'s buildings and improvements declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
| Machinery and equipment |
Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services. |
Potash Corp. of Saskatchewan Inc.'s machinery and equipment increased from 2009 to 2010 and from 2010 to 2011.
|
| Assets under construction |
Carrying amount at the balance sheet date of long-lived asset under construction that include construction costs to date on capital projects that have not been completed and assets being constructed that are not ready to be placed into service. |
Potash Corp. of Saskatchewan Inc.'s assets under construction increased from 2009 to 2010 and from 2010 to 2011.
|
| Property, plant and equipment, cost |
Carrying amount at the balance sheet date for long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, physical structures, machinery, vehicles, furniture, computer equipment, construction in progress, and similar items. Amount does not include depreciation. |
Potash Corp. of Saskatchewan Inc.'s property, plant and equipment, cost increased from 2009 to 2010 and from 2010 to 2011.
|
| Property, plant and equipment, carrying amount |
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. |
Potash Corp. of Saskatchewan Inc.'s property, plant and equipment, carrying amount increased from 2009 to 2010 and from 2010 to 2011.
|
Property, Plant and Equipment Ratios (Summary)
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
Potash Corp. of Saskatchewan Inc., Property, Plant and Equipment Ratios
| Ratio |
Description |
The company |
| Average age |
As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. |
Potash Corp. of Saskatchewan Inc.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011.
|
| Estimated total useful life |
Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. |
Potash Corp. of Saskatchewan Inc.'s estimated total useful life of depreciable property, plant and equipment declined from 2009 to 2010 but then slightly increased from 2010 to 2011.
|
| Estimated time elapsed since purchase |
The approximate age in years of a company's fixed assets. Useful for comparison purposes. |
Potash Corp. of Saskatchewan Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
|
| Estimated remaining life |
|
Potash Corp. of Saskatchewan Inc.'s estimated remaining life of depreciable property, plant and equipment declined from 2009 to 2010 but then slightly increased from 2010 to 2011.
|
Average Age
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Average age |
As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. |
Potash Corp. of Saskatchewan Inc.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011.
|
Estimated Total Useful Life
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Estimated total useful life |
Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. |
Potash Corp. of Saskatchewan Inc.'s estimated total useful life of depreciable property, plant and equipment declined from 2009 to 2010 but then slightly increased from 2010 to 2011.
|
Estimated Age, Time Elapsed Since Purchase
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Estimated time elapsed since purchase |
The approximate age in years of a company's fixed assets. Useful for comparison purposes. |
Potash Corp. of Saskatchewan Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
|
Estimated Remaining Life
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Estimated remaining life |
|
Potash Corp. of Saskatchewan Inc.'s estimated remaining life of depreciable property, plant and equipment declined from 2009 to 2010 but then slightly increased from 2010 to 2011.
|
