2012 wintec annual report

NOTES TO THE
FINANCIAL STATEMENTS
For the year ended 31 December 2012.
A summary of the policies applied to the Institute’s intangible
assets is as follows:
Computer Software
Useful lives
Method used
Internally generated / acquired
Method
Finite 2 - 10 years
Straight line method
Separately acquired
Capitalised intellectual property development costs are still
work in progress. The useful life of completed projects will be
established at project completion.
Goodwill
Goodwill that arises upon the acquisition of subsidiaries is
presented with intangible assets.
Goodwill is initially measured at cost, being the excess of the
aggregate of the consideration transferred over the fair value of
the identifiable net assets acquired and liabilities assumed.
After initial recognition, goodwill is measured at cost less
accumulated impairment losses.
Impairment
The carrying values of plant and equipment other than those
whose future economic benefits are not directly related to their
ability to generate net cash are reviewed for impairment when
events or changes in circumstances indicate that the carrying value
may not be recoverable.
Value in use is depreciated replacement cost for an asset where
the future economic benefits or service potential of the asset are
not primarily dependent on the asset’s ability to generate net cash
inflows and where the Institute and Group would, if deprived of the
asset, replace its remaining future economic benefits or service
potential.
For an asset that does not generate largely independent cash
inflows, the recoverable amount is determined for the cashgenerating
unit to which the asset belongs.
If any such indication exists and where the carrying values exceed
the estimated recoverable amount, the assets or cash-generating
units are written down to their recoverable amount.
The recoverable amount of plant and equipment is the greater
of fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their
present value using a discount rate that reflects current market
assessments of the time value of money and the risks specific to
the asset.
If an asset’s carrying amount exceeds its recoverable amount,
the asset is impaired and the carrying amount is written-down to
the recoverable amount. For revalued assets the impairment loss
is recognised in other comprehensive income to the extent the
impairment loss does not exceed the amount in the revaluation
reserve in equity for that same class of asset. Where that results
in a debit balance in the revaluation reserve, the balance is
recognised in the surplus or deficit.
Assets held for educational and related matters and related
activities are assessed for impairment by considering the assets
for obsolescence, changes in useful life assessments, optimisation
and other related matters.
Creditors and other payables
Short term creditors and other short term payables are recorded
at their face value.
Interest-bearing loans and borrowing
All loans and borrowings are initially recognised at cost, being the
fair value of the consideration received net of transaction costs
associated with the borrowing.
After initial recognition, all borrowings are measured at amortised
cost using the effective interest method.
Borrowings are classified as current liabilities unless the Institute
or Group has an unconditional right to defer settlement of the
liability for at least 12 months after the balance date or if the
borrowings are expected to be settled within 12 months of the
balance date.
Employee entitlements
Short-term employee entitlements
Employee benefits that are due to be settled within 12 months
after the end of the period in which the employee renders the
related service are measured at nominal values based on accrued
entitlements at current rates of pay. These include salaries and
wages accrued up to balance date, annual leave earned but not
yet taken at balance date, and sick leave. A liability for sick leave