Annual Report

Astarta Holding N.V.Astarta Holding N.V. Consolidated financial statements as at and for the year ended 31 December 2011(d)(e)(f)(i)initial recognition, intangible assets are carried at cost less accumulated amortization. The land lease rightsare amortized over 5 to 10 years on a straight line basis. The amortization expense is recognized in theincome statement in the expense category consistent with the function of intangible asset.Software is stated at cost less accumulated amortization and impairment losses. Amortization is charged tothe income statement in the expense category consistent with the function of intangible asset on a straightlinebasis over the estimated useful lives, normally 4 years.The amortization period and the amortization method for intangible asset with a finite useful life is reviewedat least at each year end.Biological assetsThe Group classifies livestock (primarily cattle) and unharvested crops as biological assets. Biological assetsare carried at their fair value less estimated costs to sell, except when the fair value cannot be measuredreliably. If fair value cannot be measured reliably, biological assets are carried at cost less accumulateddepreciation and accumulated impairment losses. Costs to sell are the incremental costs directlyattributable to the disposal of an asset, excluding finance costs and income taxes.Gain (loss) from changes in fair value of biological assets included in the consolidated income statementrepresents the net difference between (i) the excess of the fair value less estimated costs to sell of biologicalassets over their total cost at the end of reporting period, and (ii) the corresponding amount at the beginningof the reporting period.The Group classifies biological assets as current or non-current depending upon the average useful life ofthe particular group of biological assets.Agricultural produceThe Group classifies harvested crops as agricultural produce. After harvesting, agricultural produce istreated as inventories.Agricultural produce is carried in the consolidated statement of financial position at fair value less estimatedcosts to sell at the point of harvest. For agricultural produce harvested during the reporting period, thedifference between the cost and fair value less costs to sell at the point of harvest is included in theconsolidated income statement as gain/(loss) on remeasurement of agricultural produce to fair value.Agricultural produce sold is charged to the cost of revenues at cost. The difference between such cost andthe respective fair value less costs to sell, in the case of agricultural produce harvested in previous periodsbut sold during the reporting period, is booked to gain/(loss) on remeasurement of agricultural produce tofair value.Financial assetsNon-derivative financial assetsNon-derivative financial assets comprise investments in equity and debt securities, trade and otherreceivables, promissory notes, cash and cash equivalents. Non-derivative financial assets are recognizedinitially at fair value plus, for instruments not at fair value through profit or loss, any directly attributabletransaction costs, except as described below. Subsequent to initial recognition non-derivative financialassets are measured as described below.A financial instrument is recognized if the Group becomes a party to the contractual provisions of theinstrument. Financial assets are derecognized if the Group’s contractual rights to the cash flows from thefinancial assets expire or if the Group transfers the financial asset to another party without retaining controlor substantially all risks and rewards of the asset. Regular way purchases and sales of financial assets areaccounted for at trade date, i.e., the date that the Group commits itself to purchase or sell the asset.Held-to-maturity investmentsNon-derivative financial assets with fixed and determinable payments and fixed maturities are classified asheld-to-maturity when the Group has the positive intention and ability to hold them to maturity. After initialrecognition held-to-maturity investments are measured at amortized cost using the effective interestmethod, less any impairment losses.82