Annual Report 2011/12 - International Entertainment Corporation

Notes to the Consolidated Financial StatementsFor the year ended 31 March 20123. SIGNIFICANT ACCOUNTING POLICIES (Continued)Financial instruments (Continued)DerecognitionThe Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire,or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to anotherentity.On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and thesum of the consideration received and receivable and the cumulative gain or loss that had been recognised in othercomprehensive income and accumulated in equity is recognised in profit or loss.The Group derecognised financial liabilities when, and only when, the Group’s obligation is discharged, cancelled orexpires. The difference between the carrying amount of the financial liability derecognised and the consideration paidand payable is recognised in profit or loss.Property, plant and equipmentProperty, plant and equipment including buildings held for use in the supply of goods or services, or for administrativepurposes are stated in the consolidated statement of financial position at cost less subsequent accumulateddepreciation and any identified accumulated impairment losses, if any.Depreciation is recognised so as to write off the cost of items of property, plant and equipment less their residualvalues over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values anddepreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimateaccounted for on a prospective basis.An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits areexpected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an itemof property, plant and equipment is determined as the difference between the sales proceeds and the carrying amountof the asset and is recognised in profit or loss.International Entertainment Corporation - Annual Report 2011/12 43