(d) Tangible fixed assets and depreciation

Tangible fixed assets are stated at original cost less accumulated depreciation and any provision for impairment in value. In the case of major stadium work which has been financed by borrowing, cost includes related interest capitalised for the period up to the completion of the stadium project. Depreciation is provided to write off the cost of the assets over their estimated useful lives on a straightline basis.

A full year’s depreciation is charged in the year of acquisition or year in which the asset is brought into use. The estimated useful lives for the main categories of fixed assets are:

Freehold and long leasehold buildings	40 years
Stadium fittings and equipment	4-18 years
Office equipment and vehicles	3-5 years
Assets held under finance leases	over the period of the lease
No preciation is charged freehold land.

(e) Taxation The charge for taxation is based on the result for the year at the current rates of tax and takes into account deferred taxation on all timing differences arising on the treatment of certain items for accounts purposes and their treatment for corporation tax that have originated but have not reversed by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. A net deferred tax asset is regarded as recoverable and therefore

recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets and liabilities are not discounted.

(f) Finance leases

Assets held under finance leases and the related lease obligations are included at the fair value of the leased assets at the inception of the lease. Depreciation on leased assets is calculated to write off this amount on a straight-line basis over the shorter of the lease term and the useful life of the asset. Rentals payable are apportioned between the finance charge and a reduction of the outstanding obligation for future amounts payable so that the charge for each accounting period is a constant percentage of the remaining balance of the capital sum outstanding.

(g) Operating leases

Rentals payable under operating leases are charged on a straight-line basis over the term of the lease.

(h) Investments

Investments held as fixed assets are stated at cost less any provision considered necessary for permanent diminution in value.

(i) Stocks

Stocks, which are goods held for resale, are stated at the lower of cost and net realisable value. Net realisable value is estimated to be the selling price less any further deductions considered necessary for obsolete or slow moving stock.