1086 AnnRep-Investment S04-3 - Pumpkin Patch investor relations

Leased AssetsOperating lease payments are representative of the pattern of benefits derived from the leased assetsand accordingly are charged to the statements of financial performance in the periods in which theyare incurred. Landlord contributions to fit-out costs are recognised in the statement of financialperformance over the minimum period of the lease, as a reduction in operating lease costs.InvestmentsInvestments in subsidiaries are stated at the lower of cost or net realisable value. Other investmentsare stated at the lower of cost or net realisable value.IntangiblesThe excess of cost over the fair value of the net assets of the subsidiary entities is recognised asgoodwill and is amortised to the statements of financial performance on a straight line basis overthe shorter of its estimated life or 5 years.Other intangibles comprise of the cost of registering trademarks. These are amortised over theiranticipated useful lives which range between 5 and 10 years.InventoriesRaw materials and finished goods are stated at the lower of average weighted cost and net realisablevalue. Cost is determined on a first in, first out basis.Accounts ReceivableAccounts receivable are carried at estimated realisable value after providing against debts wherecollection is doubtful.ImpairmentAnnually, the directors assess the carrying value of each asset. Where the estimated recoverableamount of the asset is less than its carrying amount, the asset is written down. The impairment loss isrecognised in the statements of financial performance.Employee EntitlementsEmployee entitlements to salaries and wages, annual leave, long service leave and other benefitsare recognised when they accrue to employees.The liability for employee entitlements is carried at the present value of the estimated futurecash outflows.Financial InstrumentsRecognisedFinancial instruments carried on the statement of financial position include cash and bank balances,investments, receivables, trade creditors and borrowings. The particular recognition methods adoptedare disclosed in the individual policy statements associated with each item.34