✨ Financial Statements Notes
2786 NEW ZEALAND GAZETTE, No. 104 18 AUGUST 2010
Notes to the financial statements (continued)
Significant accounting policies (continued)
3 Significant accounting policies
(c) Property, plant and equipment (continued)
(ii) Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Trust and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
(iii) Depreciation
Depreciation is recognised in profit or loss on a diminishing value basis over the estimated useful lives of each part of an item of property, plant and equipment.
The depreciation rates for the current and comparative periods are from 11.4% to 60%
Depreciation methods, useful lives and residual values are reassessed at the reporting date.
(d) Impairment
The carrying amounts of the Trust’s assets are reviewed at each balance date to determine whether there is any indication of impairment.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses directly reduce the carrying amount of assets and are recognised in the Income Statement.
(i) Impairment of debt instruments and receivables
The recoverable amount of the Trust’s receivables carried at amortised cost is calculated as the present value of estimated future cashflows, discounted the original effective interest rate (i.e. the effective interest rate computed at initial recognition of these financial assets). Receivables with a short duration are not discounted.
(ii) Non-financial assets
The carrying amounts of the Trust’s non-financial assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.
(e) Employee benefits
There are no employee benefits at 31 March 2010.
(f) Revenue
Investment income
Dividend income is recognised on the date that the Trust’s right to receive payment is established. Interest income is recognised as it accrues.
Next Page →
NZ Gazette 2010, No 104
✨ LLM interpretation of page content
💰
BayTrust Annual Report for the year ended 31 March 2010
(continued from previous page)
💰 Finance & RevenueAccounting policies, Property, Plant and equipment, Depreciation, Impairment, Employee benefits, Revenue