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Cordlife Group Limited
Annual Report 2016
Notes to
The Financial Statements
for the financial year ended 30 June 2016
2.
Summary of significant accounting policies (cont’d)
2.7
Property, plant and equipment (cont’d)
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 10 years
Office equipment
–
3 to 10 years
Motor vehicle
–
3 to 5 years
Leasehold improvement
–
4 to 7 years
Buildings
–
50 to 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 de-recognised upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset is included in
profit or loss in the year the asset is derecognised.
2.8
Investment properties
Investment properties are properties that are owned by the Group in order to earn rentals or for capital
appreciation, or both, rather than for use in the production or supply of goods or services, or for administrative
purposes, or in the ordinary course of business. Investment properties comprise completed investment
properties and properties that are being constructed or developed for future use as investment properties.
Properties held under operating leases are classified as investment properties when the definition of investment
properties is met and they are accounted for as finance leases.
Investment properties are initially measured at cost, including transaction costs. The carrying amount includes
the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition
criteria are met.
Subsequent to initial recognition, investment properties are measured at fair value which reflects market
conditions at the end of the reporting period. Gains or losses arising from changes in the fair values of
investment properties are included in profit or loss in the year in which they arise.
Investment properties are de-recognised when either they have been disposed of or when the investment
property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any
gain or loss on the retirement or disposal of an investment property is recognised in profit or loss in the year of
retirement or disposal.
