- 1 2 Question This Is The Part Of The Annual Report Do They Satisfied The Measurements Requirements For Ppes As Pe 1 (157.89 KiB) Viewed 21 times
- 1 2 Question This Is The Part Of The Annual Report Do They Satisfied The Measurements Requirements For Ppes As Pe 2 (102.44 KiB) Viewed 21 times
they satisfied the measurements requirements for PPEs as per AASB
116? Crytically analyse it.
37 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (C) FINANCIAL INSTRUMENTS Non-Derivative Financial Instruments i. Recognition, Measurement and Derecognition of Non-Derivative Financial Assets At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs related to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed. The Group subsequently classifies its financial assets in the following measurement categories: - Those to be measured subsequently at fair value (either through the Consolidated Income Statement or the Consolidated Statement of Comprehensive Income) Those to be measured at amortised cost. The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, are settled or the Group transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership are transferred. ii. Recognition, Measurement and Derecognition of Non-Derivative Financial Liabilities At initial recognition, the Group measures a non-derivative financial liability at its fair value, less transaction costs. The Group subsequently measures non-derivative financial liabilities at amortised cost, with any difference between cost and redemption value being recognised in the Consolidated Income Statement over the period of the borrowings using the effective interest rate method. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, where there is a extinguishment/substantial modification or transfer, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in the profit or loss.
(H) PROPERTY, PLANT AND EQUIPMENT i. Recognition and Measurement Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Items of property, plant and equipment are initially recorded at cost, being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition. Costs to dismantle and remove assets The cost of acquired assets includes the initial estimate of costs of dismantling and removing the items and restoring the site on which they are located. Changes in the measurement of existing liabilities resulting from changes in foreign exchange rates, timing or expected outflow of resources required to settle the obligation, or from changes in the discount rate are recognised as an adjustment to the asset recognised. The unwinding of the discount is treated as a finance expense in the Consolidated Income Statement. Gains or losses on cash flow hedges of the purchase of assets The cost also may include transfers from the hedge reserve of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment in accordance with Note 37(C). Capitalisation of interest Interest attributed to progress payments made on account of aircraft and other qualifying assets under construction are capitalised and added to the cost of the asset. All other borrowing costs are recognised in the Income Statement in the year in which they are incurred.