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13

Years of

estimated

useful life

Buildings

33

Plant

5 to 8

Computer hardware

3 to 5

Other fixtures

6 to 10

Other items of property, plant and equipment

6 to 10

4.3 Impairment of intangible assets and property, plant and equipment

At the end of each reporting period (for intangible assets with indefinite useful lives) or whenever

there are indications of impairment (for other tangible and intangible assets), the Company tests

these assets for impairment to determine whether the recoverable amount of the assets has been

reduced to below their carrying amount.

Recoverable amount is the higher of fair value less costs to sell and value in use.

In the case of property, plant and equipment, the impairment tests are performed individually for

each asset.

Where an impairment loss subsequently reverses (not permitted in the specific case of goodwill),

the carrying amount of the asset is increased to the revised estimate of its recoverable amount,

but so that the increased carrying amount does not exceed the carrying amount that would have

been determined had no impairment loss been recognised in prior years. A reversal of an

impairment loss is recognised as income.

4.4 Operating leases

Lease income and expenses from operating leases are recognised in income on an accrual basis.

A payment made on entering into or acquiring a leasehold that is accounted for as an operating

lease represents prepaid lease payments that are amortised over the lease term in accordance

with the pattern of benefits provided.

The leases in which the Company is a lessor consist basically of facilities which the Company has

leased to companies in its Group.

4.5 Financial instruments

4.5.1. Financial assets

Classification-

The financial assets held by the Company are classified in the following categories:

a)

Loans and receivables: financial assets arising from the sale of goods or the rendering of

services in the ordinary course of the Company’s business, or financial assets which, not

having commercial substance, are not equity instruments or derivatives, have fixed or

determinable payments and are not traded in an active market.

b)

Equity investments in Group companies and associates: Group companies are deemed to

be those related to the Company as a result of a relationship of control and associates are

companies over which the Company exercises significant influence.

c)

Held-to-maturity investments: debt securities with fixed maturity and determinable

payments that are traded in an active market and which the Company has the positive

intention and ability to hold to the date of maturity.