About 16 percent of the fixed assets exploited currently in the gas industry have been fully depreciated. Moreover, 38.7 percent of the fixed assets being handled in the gas extraction are fully worn out, according to accountant reports.
Gazprom did not undertake any re-estimation of its key assets in 2002-2003. As a result, with the mounting expenses on the introduction and acquisition of new fixed assets due to inflation, figures for depreciation and, consequently, rents appear to be artificially underrated and distort the structure of production costs.
Gazprom, seeking to perfect its depreciation policy, plans to accomplish a List of fixed asset types used in the gas industry and to set up a standing commission on the assessment of the technical condition of the fixed assets, decision-making on the liquidation of fixed facilities, change of service terms of these facilities, organisation of work connected with the re-appraisal of fixed assets.
Besides, the company plans to complete and endorse the routine of re-appraisal of the Gazprom key assets, to ensure the curtailment of terms for the construction and introduction of production facilities and to analyse, following the work of an independent appraiser, the impact of additional depreciation sums on the company's economic indices.
The board of directors has also taken into consideration reports about the effort to improve cooperative management in Gazprom and entrusted the management with continuing this work.
