Landcorp - Crown Ownership Monitoring Unit

LANDCORP FARMING LIMITED AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS CONTINUEDNote 3 – Summary of Significant Accounting Policies (continued)(c) Other intangible assetsOther intangible assets that are acquired by the Group are recorded at cost, less accumulated amortisation and impairment losses.(d) AmortisationIntangible assets are amortised on a straight line basis over the expected useful life of the asset. The estimated useful lives for intangibleassets are:Computer software5 years(e) ImpairmentIf the estimated recoverable amount of the asset is less than its carrying amount, the asset is written down to its estimated recoverable amountand an impairment loss is recognised in the Statement of Comprehensive Income. Recoverable amount is the greater of fair value less costs to selland value in use.Property, plant and equipment(a) Recognition and measurementThe initial cost of property, plant and equipment is the initial purchase price plus directly attributable costs of bringing the item to workingcondition for its intended use.(b) Subsequent measurementFreehold land and improvements (including buildings) are valued annually on 30 June at fair value by independent registered valuers. Anyaccumulated depreciation on an asset at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amountrestated to the revalued amount of the asset. Changes in valuation are taken to the freehold land and improvements revaluation reserve usingthe net revaluation method. Where an asset’s downwards revaluation exceeds previous positive revaluations, the net negative amount of therevaluation is reported within net profit in the Statement of Comprehensive Income.Protected land (including buildings on protected land) is valued at fair value at the time it is classified as protected land. Under theprotected land agreement, this value is considered to be the ongoing fair value of the land to Landcorp. Buildings are stated at this valueless accumulated depreciation.All other items of property plant and equipment are measured at cost less accumulated depreciation and impairment losses.(c) DepreciationDepreciation is calculated on a straight line basis on all items of property, plant and equipment, except for land, to allocate the cost or revaluedamount of an asset less any residual value, over its useful life. The estimated useful lives of property, plant and equipment are as follows:Buildings on freehold landBuildings on leased landPlantMotor vehiclesFurniture and equipmentComputer equipment30 – 60 years30 – 60 years3 – 10 years4 – 10 years7 years3 years(d) ImpairmentIf the estimated recoverable amount of the asset is less than its carrying amount, the asset is written down to its estimated recoverable amount.For property, plant and equipment that are revalued annually, this difference is accounted for in the same manner as a downwards revaluation.For property, plant and equipment recorded at depreciated historical cost an impairment loss is recognised in the Statement of ComprehensiveIncome. Recoverable amount is the greater of fair value less costs to sell and value in use.58