NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
f)
Property, plant and equipment
Property, plant and equipment are initially recognised at cost and subsequently carried at cost less
accumulated depreciation and accumulated impairment losses.
The cost of property, plant and equipment initially recognised includes its purchase price and any cost
that is directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management.
Subsequent expenditure relating to property, plant and equipment that has already been recognised is
added to the carrying amount of the asset when it is probable that future economic benefits will flow
to the Group and the cost can be reliably measured. Other subsequent expenditure is recognised as an
expense during the financial year in which it is incurred.
Fully depreciated assets are retained in the financial statements until they are no longer in use.
On disposal of property, plant and equipment, the difference between the net disposal proceeds and its
carrying amount is taken to profit or loss.
f)
Property, plant and equipment
Depreciation is calculated on a straight line basis to allocate the depreciable amounts of the property,
plant and equipment over their estimated useful lives. The estimated useful lives are as follows:
Years
Furniture and fittings
5
Renovation
5
Office equipment and fittings
5
Site equipment and fittings
5 – 6
Motor vehicles
10
Gondolas and machineries
3 – 10
Computers
3
Leasehold properties
6 – 55
The residual values, estimated useful lives and depreciation method of property, plant and equipment are
reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision are recognised
in profit or loss when the changes arise.
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ISOTEAM LTD.
ANNUAL REPORT 2016
