WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
102
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
4.
CRI T ICAL ACCOUNT ING JUDGEMENTS AND KEY SOURCES OF
ESTIMATION UNCERTAINTY
– continued
Key sources of estimation uncertainty
– continued
Useful lives, impairment assessment and revaluation of property, plant and equipment
Leasehold land and buildings is stated in the statements of financial position at revalued amounts
less accumulated depreciation and identified impairment losses. Motor vehicles, plant and
equipment and computer equipment, furniture and fixtures are stated in the statements of financial
position at cost less accumulated depreciation and identified impairment losses. The estimation of
their useful lives impacts the level of annual depreciation expense recorded. Property, plant and
equipment are evaluated for possible impairment on a specific asset basis or in groups of similar
assets, as applicable. This process requires management’s estimate of future cash flows generated
by each asset or group of asset. For any instance where this evaluation process indicates
impairment, the appropriate assets’ carrying values are written down to the recoverable amounts
and the amount of the write-down is charged to profit or loss. Leasehold land and buildings is
revalued to fair value and management determines the appropriate techniques and inputs for fair
value measurement. The carrying amount of property, plant and equipment at March 31, 2016 was
approximately HK$251,867,000 (2015: HK$272,711,000).
