Entire Document - Chris Hani District Municipality

at year-end. The services have been discontinued as at 30 June 2011.7. INVENTORIES (continued)7.2 Subsequent Measurement (continued)1.2.3Unsold Properties:Unsold properties are valued at the lower of cost and net realisable value on aWeighted Average Cost Basis. Direct costs are accumulated for each separatelyidentifiable development. Cost also includes a portion of overhead costs, if thisrelates to development.1.2.4Other Arrangements:Redundant and slow-moving Inventories are identified and written down from costto net realisable value with regard to their estimated economic or realisable valuesand sold by public auction. Net realisable value is the estimated selling price in theordinary course of business, less applicable variable selling expenses. Differencesarising on the measurement of such Inventory at the lower of cost and net realisablevalue are recognised in the Statement of Financial Performance in the year in whichthey arise. The amount of any reversal of any write-down of Inventories arising froman increase in net realisable value or current replacement cost is recognised as areduction in the amount of Inventories recognised as an expense in the period inwhich the reversal occurs.Chapter 4The carrying amount of Inventories is recognised as an expense in the period thatthe Inventory was sold, distributed, written off or consumed, unless that cost qualifiesfor capitalisation to the cost of another asset.8.1.1NON-CURRENT ASSETS HELD-FOR-SALEInitial RecognitionNon-current Assets and Disposal Groups are classified as held-for-sale if theircarrying amount will be recovered principally through a sale transaction rather thanthrough continuing use. This condition is regarded as met only when the sale ishighly probable and the asset (or disposal group) is available for immediate sale inits present condition. Management must be committed to the sale, which should beexpected to qualify for recognition as a completed sale within one year from the dateof classification.261