Basic HTML Version
75
the period the write-down or loss occurs. The amount
of any reversal of any write-down of inventories, arising
from an increase in net realisable value, are recognised
as a reduction in the amount of inventories recognised
as an expense in the period in which the reversal occurs.
1.10 Impairment of assets
The group assesses at each end of the reporting period
whether there is any indication that an asset may be im-
paired. If any such indication exists, the group estimates
the recoverable amount of the asset.
Irrespective of whether there is any indication of impair-
ment, the group also:
•
tests intangible assets with an indefinite useful
life or intangible assets not yet available for use
for impairment annually by comparing its carrying
amount with its recoverable amount. This impair-
ment test is performed during the annual period
and at the same time every period.
•
tests goodwill acquired in a business combination
for impairment annually.
If there is any indication that an asset may be impaired,
the recoverable amount is estimated for the individual
asset. If it is not possible to estimate the recoverable
amount of the individual asset, the recoverable amount
of the cash-generating unit to which the asset belongs
is determined.
The recoverable amount of an asset or a cash-generating
unit is the higher of its fair value less costs to sell and its
value in use.
If the recoverable amount of an asset is less than its car-
rying amount, the carrying amount of the asset is re-
duced to its recoverable amount. That reduction is an
impairment loss.
An impairment loss of assets carried at cost less any ac-
cumulated depreciation or amortisation is recognised
immediately in profit or loss.
An impairment loss is recognised for cash-generating
units if the recoverable amount of the unit is less than
the carrying amount of the units. The impairment loss is
allocated to reduce the carrying amount of the assets of
the unit in the following order:
•
first, to reduce the carrying amount of any goodwill
allocated to the cash-generating unit and
•
then, to the other assets of the unit, pro rata on the
basis of the carrying amount of each asset in the
unit.
An entity assesses at each reporting date whether there
is any indication that an impairment loss recognised in
prior periods for assets other than goodwill may no lon-
ger exist or may have decreased. If any such indication
exists, the recoverable amounts of those assets are es-
timated.
The increased carrying amount of an asset other than
goodwill attributable to a reversal of an impairment loss
does not exceed the carrying amount that would have
been determined had no impairment loss been recog-
nised for the asset in prior periods.
A reversal of an impairment loss of assets carried at cost
less accumulated depreciation or amortisation other
than goodwill is recognised immediately in profit or loss.
1.11 Share capital and equity
An equity instrument is any contract that evidences a re-
sidual interest in the assets of an entity after deducting
all of its liabilities.
If the group reacquires its own equity instruments, the
consideration paid, including any directly attributable
incremental costs (net of income taxes) on those instru-
ments are deducted from equity until the shares are can-
celled or reissued. No gain or loss is recognised in profit
or loss on the purchase, sale, issue or cancellation of the
group’s own equity instruments. Consideration paid or
received shall be recognised directly in equity.