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FINANCIAL REPORT
NOTES TO THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED
30 JUNE 2018 (CONTINUED) D. Impairment of Assets
At the end of each reporting period, the
company reviews the carrying values of
Gains and losses on disposals are its tangible and intangible assets to
determine whether there is any indication
determined by comparing proceeds with that those assets have been impaired. If
the carrying amount. These gains or such an indication exists, the recoverable
losses are included in the statement of amount of the asset, being the higher of
comprehensive income. When revalued the asset’s fair value less costs to sell and
assets are sold, amounts included in the value in use, is compared to the asset’s
revaluation surplus relating to that asset carrying value. Any excess of the asset’s
are transferred to retained earnings. carrying value over its recoverable
amount is expensed to the statement of
C. Leases comprehensive income.
Leases of fixed assets, where Where it is not possible to estimate the
substantially all the risks and benefits recoverable amount of an individual
incidental to the ownership of the asset, asset, the company estimates the
but not the legal ownership, which are recoverable amount of the cash-
transferred to the company, are classified generating unit to which the asset
as finance leases. belongs.
Finance leases are capitalised by Derecognition
recording an asset and a liability at the Financial assets are derecognised where
lower of the amounts equal to the fair the contractual rights to receipt of cash
value of the leased property or the flows expire or the asset is transferred to
present value of the minimum lease another party whereby the entity no
payments, including any guaranteed longer has any significant continuing
residual values. Lease payments are involvement in the risks and benefits
allocated between the reduction of the associated with the asset. Financial
lease liability and the lease interest liabilities are derecognised where the
expense for the period. related obligations are either discharged,
cancelled or expired. The difference
Leased assets are depreciated on a between the carrying value of the financial
straight-line basis over the shorter of their liability extinguished or transferred to
estimated useful lives or the lease term. another party and the fair value of
consideration paid, including the transfer
Lease payments for operating leases, of non-cash assets or liabilities assumed,
is recognised in profit or loss.
where substantially all the risks and
benefits remain with the lessor, are
charged as expenses on a straight-line
basis over the lease term.
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Annual Report 2017-2018 nnual Report 2017-2018
