NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
2.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION (CONT’D)
2A.
Significant accounting policies (cont’d)
Plant and equipment
Depreciation is provided on a straight-line basis to allocate the gross carrying amounts of the assets less their
residual values over their estimated useful lives of each part of an item of these assets. The annual rates of
depreciation are as follows:
Plant and equipment – 25%
An asset is depreciated when it is available for use until it is derecognised even if during that period the item is
idle. Fully depreciated assets still in use are retained in the financial statements.
Plant and equipment are carried at cost on initial recognition and after initial recognition at cost less any
accumulated depreciation and any accumulated impairment losses. The gain or loss arising from the derecognition
of an item of plant and equipment is measured as the difference between the net disposal proceeds, if any, and
the carrying amount of the item and is recognised in profit or loss.
The residual value and the useful life of an asset is reviewed at least at each end of the reporting year and,
if expectations differ significantly from previous estimates, the changes are accounted for as a change in an
accounting estimate, and the depreciation charge for the current and future periods are adjusted.
Cost also includes acquisition cost, borrowing cost capitalised and any cost directly attributable to bringing the asset
or component to the location and condition necessary for it to be capable of operating in the manner intended
by management. Subsequent costs are recognised as an asset only when it is probable that future economic
benefits associated with the itemwill flow to the entity and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to profit or loss when they are incurred.
Investment property
Investment property is property (land or a building or part of a building or both) owned or held under a finance
lease to earn rentals or for capital appreciation or both, rather than for use in the production or supply of goods
or services or for administrative purposes or sale in the ordinary course of business. It includes an investment
property in the course of construction. After initial recognition at cost including transaction costs the fair value
model is used to measure the investment property at fair value as of the end of the reporting year. A gain or loss
arising from a change in the fair value of investment property is included in profit or loss for the reporting year
in which it arises. The fair values are measured periodically on a systematic basis at least once yearly by external
independent valuers having an appropriate recognised professional qualification and recent experience in the
location and category of property being valued.
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