Page 158 - ar2012

Notes to the fnancial statements
For the fnancial year ended 31 March 2012
2. Significant accounting policies (continued)
2.5 Property, plant and equipment
(a) Measurement
Property, plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated
depreciation and accumulated impairment losses (Note 2.6).
The cost of an item of property, plant and equipment includes its purchase price and any cost that is directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the
manner intended by management.
(b) Depreciation
Depreciation on property, plant and equipment is calculated using the straight line method to allocate their
depreciable amounts over the estimated useful lives as follows:
Useful lives
Renovations and improvements 5 years
Computers, furniture and equipment 3 to 5 years
The residual values, depreciation method and estimated useful lives of property, plant and equipment are reviewed,
and adjusted as appropriate, at each balance sheet date. The effects of any revision are recognised in proft or loss
when the changes arise.
(c) Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment that has already been recognised is added to
the carrying amount of the asset only when it is probable that future economic benefts associated with the item
will fow to the Company and the cost of the item can be measured reliably. All repair and maintenance expenses
are recognised in proft or loss when incurred.
(d) Disposal
On disposal of an item of property, plant and equipment, the difference between the net disposal proceeds and its
carrying amount is taken to proft or loss.
156 POSITIONED FOR GROWTH