Page 31 - NEHA 2020 Annual Report

Annual Report 2020 | 31
Notes to the Financial Statements
for the period ended 31 December 2020
Government grants
Grants are recognised using the accruals model when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Grants towards capital expenditure are credited to deferred income and are released to the income statement over the expected useful life of the related assets, by equal annual instalments. Grants towards revenue expenditure are released to the income statement as the related expenditure is incurred.
Management and maintenance subsidies
Management and maintenance subsidies are payable annually by local authorities to the company in respect of projects completed under the Capital Loan and Subsidiary Scheme.
Management and maintenance subsidies are received from Dundalk Town Council, Meath County Council, Louth County council and South Dublin County Council.
Lease income
Lease income is received as Payment and Availability from County Councils.
2.4 Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure 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.
Housing properties are properties available for rent, which are held at cost less depreciation. Housing properties under the course of construction are also stated at cost. The cost of housing properties includes the cost of acquiring land and buildings, the cost of construction and any capitalised interest. Interest incurred on a loan financing a development is capitalised up to the date of the practical completion of the scheme.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.
Depreciation is provided on the following basis: Housing properties
Plant & machinery
Office equipment
IT equipment
Assets under the course of construction
2% straight line 15% straight line 15% straight line 25% straight line
Not depreciated
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.