2.
Significant accounting policies and other explanatory information (cont'd)
2A.
Significant accountingpolicies (cont'd)
Plant and equipment (cont'd)
An asset is depreciatedwhen 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 determined 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 themanner
intended by management. Subsequent costs are recognised as an asset only when it is probable that future
economic benefits associated with the item will flow to the entity and the cost of the item can be measured
reliably. All other repairs andmaintenance are charged to profit or losswhen they are incurred.
Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased
assets are classified as operating leases. For operating leases, lease payments are recognised as an expense
in incomeandexpenditureona straight-linebasisover the termof the relevant leaseunlessanother systematic
basis is representativeof the timepatternof theuser’sbenefit, even if thepaymentsarenot on that basis. Lease
incentives received are recognised in income and expenditure as an integral part of the total lease expense.
Impairment of non-financial assets
Irrespective of whether there is any indication of impairment, an annual impairment test is performed at the
same timeevery year onan intangibleasset withan indefiniteuseful lifeor an intangibleasset not yet available
for use. The carrying amount of other non-financial assets is reviewed at each end of the reporting year for
indicationsof impairment andwhereanasset is impaired, it iswrittendown throughprofit or loss to itsestimated
recoverable amount. The impairment loss is the excess of the carrying amount over the recoverable amount
and is recognised in profit or loss. The recoverable amount of an asset or a cash-generating unit is the higher
of its fair value less costs of disposal and its value in use.When the fair value less costs of disposal method is
used, any available recent market transactions are taken into consideration. When the value in usemethod is
adopted, in assessing the value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (cash-generating units). At each end of the reporting year
non-financial assets other than goodwill with impairment loss recognised in prior periods are assessed
for possible reversal of the impairment. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have beenmeasured, net of depreciation or
amortisation, if no impairment loss had been recognised.
Financial assets
Initial recognition, measurement and derecognition:
A financial asset is recognised on the statement of financial positionwhen, and only when, the entity becomes
a party to the contractual provisions of the instrument. The initial recognition of financial assets is at fair value
normally representedby the transactionprice. The transactionprice for financial asset not classifiedat fair value
throughprofit or loss includes the transaction costs that aredirectly attributable to theacquisitionor issueof the
financial asset. Transaction costs incurred on the acquisition or issue of financial assets classified at fair value
through profit or loss are expensed immediately. The transactions are recorded at the trade date
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