Strategic report Governance Financial statements Other information SECTION 2: ASSETS AND LIABILITIES NOTES TO THE GROUP FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED 2.3 Property, plant and equipment continued 2.4 Investments Property, plant and equipment Investments are recognised in the Group’s statement of financial position, on trade date, when the Right–of–use Computer Office Group becomes party to the contractual provisions of an instrument and are initially measured at assets hardware equipment Total £m £m £m £m fair value. Cost Investments by default are designated as being held at fair value through profit or loss and are At 1 July 2019 – 36.0 11.3 47.3 subsequently measured at fair value. Fair value being the quoted market price of the listed Additions – 5.1 0.3 5.4 Assets recognised on initial investment, with any gain or loss reported within the income statement. An investment is classified implementation of IFRS 16 20.8 – – 20.8 in this category if it is held principally for the purpose of selling in the short–term mandatorily, Disposa ls (0.6) (1.2) – (1.8) in accordance with IFRS 9. At 30 June 2020 20.2 39.9 11.6 71.7 Additions 1.3 3.6 0.5 5.4 The Group derecognises financial assets only when the contractual rights to the cash flows, Disposa ls (1.1) (0.9) – (2.0) or substantially all of the risks and rewards of ownership from the asset are transferred or expire. At 30 June 2021 20.4 42.6 12.1 75.1 On derecognition of a financial asset in its entirety, the difference between the asset’s carrying Accumulated depreciation amount and the sum of the consideration received and receivable is recognised in profit or loss. At 1 July 2019 – 24.8 6.5 31.3 Charge 2.9 4.4 1.1 8.4 Disposa l – (1.2) – (1.2) Year ended Year ended At 30 June 2020 2.9 28.0 7.6 38.5 30 June 2021 30 June 2020 Charge 3.0 4.7 1.3 9.0 £m £m Disposa l (0.1) (0.9) (1.0) At beginning of year 0.6 1.1 – At 30 June 2021 5.8 31.8 8.9 46.5 Purchases 2.1 – Carrying amount Disposals (1.8) (0.5) At 30 June 2021 14.6 10.8 3.2 28.6 At end of year 0.9 0.6 At 30 June 2020 17.3 11.9 4.0 33.2 Comprising: At 1 July 2019 11.2 4.8 16.0 Current asset investment – UK listed securities valued at quoted market price 0.9 0.6 – Leases recognised in property, plant and equipment £0.9 million (2020: £0.6 million) of investments are classified as held at fair value through profit and loss, Year ended Year ended being deal related short term investments. 30 June 2021 30 June 2020 Investment balances are short term positions the Group takes as a result of deals placed either in error £m £m Right–of–use assets or due to having to take positions where clients are no longer able to hold an investment. The gross Buildings 14.6 17.3 gains and losses in relation to fair value include movements where no investment position is taken and are as shown below: Leases expenses recognised in the consolidated income statement Fair value movements on investments Year ended Year ended Year ended Year ended 30 June 2021 30 June 2020 30 June 2021 30 June 2020 Note £m £m £m £m Depreciation charge on right–of–use assets Gross gains 1.5 0.6 Buildings 1.3 3.0 2.9 Gross losses (8.1) (2.2) Lease expense recognised in finance costs 1.7 0.7 0.7 (6.6) (1.6) 154 Hargreaves Lansdown Report and Financial Statements 2021