ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
2.
Significant accounting policies
2.6 Impairment of Non-Financial Assets
Property, plant and equipment are reviewed for impairment at each balance sheet date or whenever there is any objective
evidence or indication that these assets may be impaired.
For the purpose of impairment testing of these assets, the asset’s recoverable amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows
that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the
cash-generating unit (“CGU”) to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the
asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment loss in profit or loss.
A previously recognised impairment loss is reversed if there has been a change in the estimates used to determine the assets’
recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is
increased to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net
of accumulated depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss.
2.7 Financial Assets
(a)
Classification
The Company classifies its financial assets in the following categories: loans and receivables and available-for-sale
financial assets. The classification depends on the nature of the asset and the purpose for which the asset was acquired.
Management determines the classification of its financial assets at initial recognition.
(i)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They are presented as current assets, except for those maturing more than 12
months after the balance sheet date which are presented as non-current assets. Loans and receivables are
presented as trade and other receivables and deposits on the balance sheet.
(ii)
Available-for-sale financial assets
Available-for-sale financial assets include equity securities. Equity investment classified as available-for-sale
are those which are neither classified as held for trading nor designated at fair value through profit or loss.
(b)
Recognition and derecognition
Financial assets are recognised when, and only when, the Company becomes a party to the contractual provisions
of the financial instrument. Financial assets are derecognised when the contractual rights to receive cash flows from
the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards
of the assets.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the
consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is
recognised in profit or loss.
