2012 wintec annual report

NOTES TO THE
FINANCIAL STATEMENTS
For the year ended 31 December 2012.
If impairment evidence exists for investments at fair value through
other comprehensive income, the cumulative loss (measured
as the difference between the acquisition cost and the current
fair value, less any impairment loss on that financial asset
previously recognised in the surplus or deficit) recognised in other
comprehensive income is reclassified from equity to the surplus
or deficit.
Equity instrument impairment losses recognised in the surplus or
deficit are not reversed through the surplus or deficit.
If in a subsequent period the fair value of a debt instrument
increases and the increase can be objectively related to an
event occurring after the impairment loss was recognised, the
impairment loss is reversed in the surplus or deficit.
Inventories
Inventories are valued at the lower of cost and net realisable value.
Inventories held for distribution or consumption in the provision of
services that are not supplied on a commercial basis are measured
at cost (using the FIFO method), adjusted when applicable, for any
loss of service potential. Where inventories are acquired at no cost
or for nominal consideration, the cost is the current replacement
cost at the date of acquisition.
Costs incurred in bringing each product to its present location
and condition are accounted for as follows:
Inventories held for resale-purchase cost on a first-in,
first-out basis;
Materials and consumables to be utilised for rendering of
services- purchase cost on a first-in, first-out basis.
Net realisable value is the estimated selling price in the ordinary
course of activities less the estimated costs necessary to make
the sale.
Property, plant and equipment
Property, plant and equipment consists of the following
asset classes:
• land
• buildings
• computer hardware
• furniture and equipment
• library collection
• motor vehicles
The measurement basis used for determining the gross carrying
amount for each class of assets is as follows:
Land is measured at fair value. Buildings and infrastructure
are measured at fair value less accumulated depreciation and
accumulated impairment losses.
All other assets are measured at cost, less accumulated
depreciation and impairment losses.
Revaluation
Land, buildings and infrastructure are revalued with sufficient
regularity to ensure that their carrying amount does not differ
materially from fair value and at least every three years.
The carrying values of revalued assets are assessed annually to
ensure that they do not differ materially from fair value. If there is
evidence supporting a material difference, then the off-cycle asset
classes are revalued.
Revaluation of property, plant and equipment is carried out on a
class of asset basis.
The net revaluation results are credited or debited to other
comprehensive income and accumulated to an asset revaluation
reserve in equity for that class of asset. Where this would result
in a debit balance in the asset revaluation reserve, this balance is
not recognised in other comprehensive income but is recognised
in the surplus or deficit. Any subsequent increase on revaluation
that off-sets a previous decrease in value recognised in the surplus
or deficit will be recognised first in the surplus or deficit up to
the amount previously expensed, and then recognised in other
comprehensive income.
Additions
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 or service potential associated with the item will flow
to the Institute and Group and the cost of the item can be
measured reliably.
The costs of day-to-day servicing of property, plant, and equipment
are recognised in the surplus or deficit as they are incurred.