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PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended
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Dec. 31, 2022
Property, plant and equipment [abstract] |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT ACCOUNTING POLICY The following accounting policy applies to property, plant and equipment excluding right-of-use assets recognized under IFRS 16. Our accounting policy for right-of-use assets is included in note 8. Recognition and measurement, including depreciation We measure property, plant and equipment upon initial recognition at cost and begin recognizing depreciation when the asset is ready for its intended use. Subsequently, property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures (capital expenditures) that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes: •the cost of materials and direct labour; •costs directly associated with bringing the assets to a working condition for their intended use; •expected costs of decommissioning the items and restoring the sites on which they are located (see note 20); and •borrowing costs on qualifying assets. We depreciate property, plant and equipment over its estimated useful life by charging depreciation expense to net income as follows:
Asset | Basis | Estimated useful life
Buildings | Diminishing balance | 15 to 40 years
Cable and wireless network | Straight-line | 3 to 40 years
Computer equipment and software | Straight-line | 4 to 10 years
Customer premise equipment | Straight-line | 3 to 6 years
Leasehold improvements | Straight-line | Over shorter of estimated useful life or lease term
Equipment and vehicles | Diminishing balance | 3 to 20 years
We calculate gains and losses on the disposal of property, plant and equipment by comparing the proceeds from the disposal with the item's carrying amount and recognize the gain or loss in net income. We capitalize development expenditures if they meet the criteria for recognition as an asset and amortize them over their expected useful lives once the assets to which they relate are available for use. We expense research expenditures, maintenance costs, and training costs as incurred. Impairment testing, including recognition and measurement of an impairment charge See "Impairment Testing" in note 9 for our policies relating to impairment testing and the related recognition and measurement of impairment charges. The impairment policies for property, plant and equipment are similar to the impairment policies for intangible assets with finite useful lives. ESTIMATES Components of an item of property, plant and equipment may have different useful lives. We make significant estimates when determining depreciation rates and asset useful lives, which require taking into account company-specific factors, such as our past experience and expected use, and industry trends, such as technological advancements. We monitor and review residual values, depreciation rates, and asset useful lives at least once a year and change them if they are different from our previous estimates. We recognize the effect of changes in estimates in net income prospectively. We use estimates to determine certain costs that are directly attributable to self-constructed assets. These estimates primarily include certain internal and external direct labour, overhead, and interest costs associated with the acquisition, construction, development, or betterment of our networks. Furthermore, we use estimates as described in note 9 in determining the recoverable amount of property, plant and equipment. JUDGMENTS We make significant judgments in choosing methods for depreciating our property, plant and equipment that we believe most accurately represent the consumption of benefits derived from those assets and are most representative of the economic substance of the intended use of the underlying assets. DETAILS OF PROPERTY, PLANT AND EQUIPMENT The tables below summarize our property, plant and equipment as at December 31, 2022 and 2021.
(In millions of dollars) | Land and buildings | Cable and wireless networks | Computer equipment and software | Customer premise equipment | Leasehold improvements | Equipment and vehicles | Construction in process | Total owned assets | Right-of- use assets (note 8) | Total property, plant and equipment
Cost |  |  |  |  |  |  |  |  |  |
As at January 1, 2022 | 1,241 |  | 22,307 |  | 6,607 |  | 1,955 |  | 680 |  | 1,253 |  | 1,330 |  | 35,373 |  | 2,626 |  | 37,999 |
Additions and transfers | 44 |  | 1,657 |  | 729 |  | 165 |  | 34 |  | 70 |  | 376 |  | 3,075 |  | 451 |  | 3,526 |
Acquisitions from business combinations | — |  | 10 |  | — |  | — |  | — |  | — |  | — |  | 10 |  | — |  | 10 |
Disposals and other | (2) |  | (864) |  | (344) |  | (23) |  | (3) |  | (11) |  | — |  | (1,247) |  | (149) |  | (1,396) |
As at December 31, 2022 | 1,283 |  | 23,110 |  | 6,992 |  | 2,097 |  | 711 |  | 1,312 |  | 1,706 |  | 37,211 |  | 2,928 |  | 40,139 |
Accumulated depreciation |  |  |  |  |  |  |  |  |  |
As at January 1, 2022 | 531 |  | 14,642 |  | 4,682 |  | 1,604 |  | 353 |  | 880 |  | — |  | 22,692 |  | 641 |  | 23,333 |
Depreciation | 36 |  | 1,170 |  | 739 |  | 210 |  | 40 |  | 86 |  | — |  | 2,281 |  | 274 |  | 2,555 |
Disposals and other | — |  | (863) |  | (342) |  | (66) |  | (3) |  | (11) |  | — |  | (1,285) |  | (38) |  | (1,323) |
As at December 31, 2022 | 567 |  | 14,949 |  | 5,079 |  | 1,748 |  | 390 |  | 955 |  | — |  | 23,688 |  | 877 |  | 24,565 |
Net carrying amount |  |  |  |  |  |  |  |  |  |
As at January 1, 2022 | 710 |  | 7,665 |  | 1,925 |  | 351 |  | 327 |  | 373 |  | 1,330 |  | 12,681 |  | 1,985 |  | 14,666 |
As at December 31, 2022 | 716 |  | 8,161 |  | 1,913 |  | 349 |  | 321 |  | 357 |  | 1,706 |  | 13,523 |  | 2,051 |  | 15,574 |
(In millions of dollars) | Land and buildings | Cable and wireless networks | Computer equipment and software | Customer premise equipment | Leasehold improvements | Equipment and vehicles | Construction in process | Total owned assets | Right-of- use assets (note 8) | Total property, plant and equipment
Cost |  |  |  |  |  |  |  |  |  |
As at January 1, 2021 | 1,210 |  | 21,913 |  | 6,078 |  | 1,954 |  | 618 |  | 1,230 |  | 848 |  | 33,851 |  | 2,248 |  | 36,099 |
Additions and transfers | 29 |  | 1,167 |  | 849 |  | 142 |  | 62 |  | 57 |  | 482 |  | 2,788 |  | 380 |  | 3,168 |
Acquisitions from business combinations | 2 |  | 29 |  | 1 |  | 6 |  | — |  | 3 |  | — |  | 41 |  | — |  | 41 |
Disposals and other | — |  | (802) |  | (321) |  | (147) |  | — |  | (37) |  | — |  | (1,307) |  | (2) |  | (1,309) |
As at December 31, 2021 | 1,241 |  | 22,307 |  | 6,607 |  | 1,955 |  | 680 |  | 1,253 |  | 1,330 |  | 35,373 |  | 2,626 |  | 37,999 |
Accumulated depreciation |  |  |  |  |  |  |  |  |  |
As at January 1, 2021 | 496 |  | 14,268 |  | 4,253 |  | 1,515 |  | 313 |  | 839 |  | — |  | 21,684 |  | 397 |  | 22,081 |
Depreciation | 35 |  | 1,170 |  | 751 |  | 245 |  | 41 |  | 80 |  | — |  | 2,322 |  | 246 |  | 2,568 |
Disposals and other | — |  | (796) |  | (322) |  | (156) |  | (1) |  | (39) |  | — |  | (1,314) |  | (2) |  | (1,316) |
As at December 31, 2021 | 531 |  | 14,642 |  | 4,682 |  | 1,604 |  | 353 |  | 880 |  | — |  | 22,692 |  | 641 |  | 23,333 |
Net carrying amount |  |  |  |  |  |  |  |  |  |
As at January 1, 2021 | 714 |  | 7,645 |  | 1,825 |  | 439 |  | 305 |  | 391 |  | 848 |  | 12,167 |  | 1,851 |  | 14,018 |
As at December 31, 2021 | 710 |  | 7,665 |  | 1,925 |  | 351 |  | 327 |  | 373 |  | 1,330 |  | 12,681 |  | 1,985 |  | 14,666 |
During 2022, we recognized capitalized interest on property, plant and equipment at a weighted average rate of approximately 4.3% (2021 - 3.4%). Annually, we perform an analysis to identify fully depreciated assets that have been retired from active use. In 2022, this resulted in an adjustment to cost and accumulated depreciation of $1,209 million (2021 - $1,157 million). The disposals had nil impact on the Consolidated Statements of Income.

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