EAPCC_Annual_Report_.. - Investing In Africa
EAPCC_Annual_Report_.. - Investing In Africa
EAPCC_Annual_Report_.. - Investing In Africa
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2010/2011<br />
EAST AFRICAN PORTLAND CEMENT COMPANY LIMITED<br />
ANNUAL REPORT AND FINANCIAL STATEMENTS<br />
NOTES TO THE FINANCIAL STATEMENTS (continued)<br />
FOR THE YEAR ENDED 30 JUNE 2011<br />
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS<br />
<strong>In</strong> the process of applying the company’s accounting policies, management has made estimates and assumptions<br />
that affect the reported amounts of assets and liabilities within current and future financial<br />
years. Estimates and judgements are continually evaluated and are based on historical experience and<br />
other factors, including expectations of future events that are believed to be reasonable under the circumstances.<br />
The critical areas of accounting estimates and judgements in relation to the preparation of these<br />
financial statements are as set out below:<br />
Impairment of assets<br />
At each reporting date, the company reviews the carrying amount of its assets to determine whether<br />
there is any indication that these assets have suffered an impairment loss. If any such indication exists,<br />
the recoverable amount of the asset is estimated in order to determine the extent of impairment.<br />
Property, plant and equipment<br />
Critical estimates are made by directors in determining the useful lives and residual values to property,<br />
plant and equipment based on the intended use of the assets and the economic lives of those assets.<br />
Subsequent changes in circumstances or prospective utilisation of the assets concerned could result in<br />
the actual useful lives or residual values differing from initial estimates.<br />
<strong>In</strong>tangible assets<br />
Critical estimates are made by directors in determining the useful lives and residual values to intangible<br />
assets based on the intended use of the assets and the economic lives of those assets. Subsequent<br />
changes in circumstances or prospective utilisation of the assets concerned could result in the actual<br />
useful lives or residual values differing from initial estimates.<br />
54<br />
EAST AFRICAN PORTLAND CEMENT COMPANY LIMITED<br />
ANNUAL REPORT AND FINANCIAL STATEMENTS 2010/2011
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