ANNUALREPORT 2013
87
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
k) Impairment of Non-FinancialAssets
(Cont’d)
Recoverableamount is thehigherof fairvalue lesscosts tosellandvalue-in-use. Inassessing
value-in-use, the estimated future cash flows are discounted to their present values using
apre-taxdiscount rate that reflectscurrentmarket assessmentsof the timevalueofmoney
and the riskspecific to theasset. If the recoverableamount of anasset (or cash-generating
unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or
cash-generatingunit) is reduced to its recoverableamount.An impairment loss is recognised
immediately inprofitor lossunless theasset iscarriedata revaluedamount.Any impairment
lossof a revaluedasset is treatedasa revaluationdecrease to theextent of anyunutilised
previously recognised revaluation surplus for the same asset.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or
cash-generatingunit) is increased to the revisedestimateof its recoverableamount, but so
that the increased carrying amount does not exceed the carrying amount that would have
beendeterminedhadno impairment lossbeen recognised for theasset (orcash-generating
unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or
loss.
l)
HirePurchaseArrangement
Assets held under hire purchase are treated as if they had been purchased at cost at the
commencement of thehirepurchaseagreements.Thesecostsare includedunderproperty,
plantandequipmentanddepreciation isprovidedaccordingly.Thecorrespondingobligations
under hire purchase are included under liabilities. The charges of instalments payable are
charged to profit or loss over the periodof the hirepurchase agreements.
m) Provisions
Provisionsare recognisedwhen theGrouphasapresentobligation (legal orconstructive)as
a result of apast event, it isprobable that anoutflowof economic resourceswill be required
to settle theobligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at each reporting date and adjusted to reflect the current best
estimate. If it is no longer probable that an outflow of economic resourceswill be required
to settle the obligation, the provision is reversed. If the effect of the time value of money
is material, provisions are discounted using a current pre tax rate that reflects, where
appropriate, the risks specific to the liability.When discounting is used, the increase in the
provision due to the passageof time is recognisedas a finance cost.
n) BorrowingCosts
Borrowingcostsdirectlyattributable to theacquisition,constructionorproductionofqualifying
assets, which are assets that necessarily take a substantial period of time to get ready for
their intended use or sale, are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use or sale.
