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CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.7 Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition,
property, plant and equipment are measured at cost less accumulated depreciation and any
accumulated impairment losses. Such cost includes the cost of replacing part of the property, plant
and equipment and borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying property, plant and equipment. The accounting policy for borrowing costs
is set out in Note 2.18. The cost of an item of property, plant and equipment is recognised as an asset
if, and only if, it is probable that future economic benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably.
When significant parts of property, plant and equipment are required to be replaced in intervals, the
Group recognises such parts as individual assets with specific useful lives and depreciation, respectively.
Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the
property, plant and equipment as a replacement if the recognition criteria are satisfied. All other repair
and maintenance costs are recognised in profit or loss as incurred.
Depreciation of an asset begins when it is available for use and is computed on a straight-line basis
over the estimated useful lives of the assets as follows:
Furniture and fittings
– 3 to 5 years
Laboratory equipment
– 5 to 7 years
Office equipment
– 3 years
Motor vehicle
– 3 years
Leasehold improvement
– 5 to 7 years
Leasehold building
– 60 years
Assets under construction included in property, plant and equipment are not depreciated as these
assets are not yet available for use.
The carrying values of property, plant and equipment are reviewed for impairment when events or
changes in circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial year-end and
adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is
included in profit or loss in the year the asset is derecognised.
