Annual Report 2016
83
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
– continued
Property, plant and equipment
– continued
The estimated useful lives, residual values and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate accounted for on a prospective
basis.
An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of asset. Any gain or loss arising
on the disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sale proceeds and the carrying amount of the asset and is recognised in
the profit or loss.
Since March 31, 2015, leasehold land and buildings are stated in the consolidated statement of
financial position at their revalued amounts, being the fair value at the date of revaluation, less
any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are performed with sufficient regularity such that the carrying amounts do not differ
materially from those that would be determined using fair values at the end of each reporting
period.
Any revaluation increase arising on the revaluation of such leasehold land and buildings is
recognised in other comprehensive income and accumulated in revaluation reserve, except to the
extent that it reverses a revaluation decrease for the same asset previously recognised in profit or
loss, in which case the increase is credited to profit or loss to the extent of the decrease previously
charged. A decrease in the carrying amount arising on the revaluation of such leasehold land and
buildings is charged in profit or loss to the extent that it exceeds the balance, if any, held in the
property revaluation reserve relating to a previous revaluation of that asset.
Depreciation on revalued buildings is recognised in profit or loss. On the subsequent sale or
retirement of a revalued property, the attributable revaluation surplus remaining in the properties
revaluation reserve is transferred directly to retained earnings.
The gain or loss arising on disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sale proceeds and the carrying amount of the asset and
is recognised in profit or loss. On the subsequent sale or retirement of a revalued property, the
attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly
to retained earnings. No transfer is made from the revaluation reserve to retained earnings except
when an asset is derecognised.
