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CSIR ANNUAL REPORT 2010/11
Notes to the Annual Financial Statements
for the year ended 31 March 2011
1PRINCIPAL ACCOUNTING POLICIES (continued)
Financial assets (continued)
to an event occurring after the
impairment loss was recognised. For
fi nancial assets measured at amortised
cost and available-for-sale fi nancial
assets that are debt securities, the
reversal is recognised in profi t or
loss. For available-for-sale fi nancial
assets that are equity securities, the
reversal is recognised directly in other
comprehensive income.
Non-financial assets
The carrying amounts of the Group’s
non-fi nancial assets, other than
inventories and deferred tax assets,
are reviewed at each reporting
date to determine whether there is
any indication of impairment. If any
such indication exists then the asset’s
recoverable amount is estimated. For
goodwill arising from the acquisition
of subsidiaries and intangible assets
that have indefi nite lives or that are not
yet available for use, the recoverable
amount is estimated at each reporting
date.
An impairment loss is recognised if the
carrying amount of an asset or its cashgenerating
unit exceeds its recoverable
amount. A cash-generating unit is
the smallest identifi able asset group
that generates cash fl ows that are
largely independent from other assets
and groups. Impairment losses are
recognised in profi t or loss. Impairment
losses recognised in respect of cashgenerating
units are allocated fi rst to
reduce the carrying amount of any
goodwill allocated to the units and then
to reduce the carrying amount of the
other assets in the unit (group of units)
on a pro rata basis.
The recoverable amount of an asset or
cash-generating unit is the greater of
its value in use and its fair value less
costs to sell. In assessing value in use,
the estimated future cash fl ows are
discounted to their present value using
a pre-tax discount rate that refl ects
current market assessments of the time
value of money and the risks specifi c to
the asset.
An impairment loss in respect of
goodwill is not reversed. In respect
of other assets, impairment losses
recognised in prior periods are
assessed at each reporting date
for any indications that the loss has
decreased or no longer exists. An
impairment loss is reversed if there has
been a change in the estimates used to
determine the recoverable amount. An
impairment loss is reversed only to the
extent that the asset’s carrying amount
does not exceed the carrying amount
that would have been determined, net
of depreciation or amortisation, if no
impairment loss had been recognised.
Non-current assets held for
sale
Non-current assets (or disposal groups
comprising assets and liabilities)
that are expected to be recovered
primarily through sale rather than
through continuing use, are classifi ed
as held for sale. Immediately before
classifi cation as held for sale, the
assets (or components of a disposal
group) are remeasured in accordance
with the Group’s accounting policies.
Thereafter, the assets (or disposal
group) are generally measured at the
lower of their carrying amount and
fair value less cost to sell. Impairment
losses on initial classifi cation as held
for sale and subsequent gains or losses
on remeasurement are recognised in
profi t or loss. Gains are not recognised
in excess of any cumulative impairment
loss.
Retirement benefits
Pension fund
The Group operates a defi ned
contribution plan, the assets of
which are held in a separate trusteeadministered
fund. The benefi ts
payable by the fund in the future, due
to retirements and withdrawals from
the fund, are contributions to the fund
together with fund interest at a rate
determined by the valuator with the
consent of the trustees. The rate is so
determined that the value of the total of
the fund shall not exceed the value of
the total assets of the fund. The Group’s
contribution to the plan is charged
to the statement of comprehensive
income when due.
Post-retirement benefits other than
pensions
The Group provides post-retirement
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