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2.
Significant accounting policies
2.5 Property, Plant and Equipment
(a)
Measurement
All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property, plant and
equipment are measured at cost less accumulated depreciation and any 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.
(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
(b)
Depreciation
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 profit 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 benefits associated with the item will
flow to the Company and the cost of the item can be measured reliably. All repair and maintenance expenses are
recognised in profit 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 recognised in profit or loss.
