Entire Annual Report - Anglo American Platinum

the share of post-acquisition earnings and othermovements in reserves. The carrying value ofassociates is reviewed on a regular basis and if apermanent impairment in the carrying value hasoccurred, it is written off in the period in whichsuch impairment is identified.Goodwill arising on the acquisition of an associateis accounted for as described in the Goodwillaccounting policy note 3.3. GoodwillGoodwill, being the excess of the purchaseconsideration over the attributable fair value of thenet identifiable assets at date of acquisition, iscapitalised and amortised on a straight-line basisover the lesser of the assets’ useful life or twentyyears. An annual impairment review is undertakenof the carrying value and useful economic life ofsuch goodwill and any impairment is charged againstincome in the period in which the impairment arose.Negative goodwill, being the excess of theattributable fair value of the net identifiable assetsover the purchase consideration, is either recognisedas income immediately or as and when futureanticipated expenditure or losses are incurred.Where negative goodwill does not relate to expectedfuture expenditure or losses it is recognised asincome on a systematic basis over the lesser of thenon-monetary assets’ useful life or twenty years.date on which the mining ventures reach commercialproduction quantities, at which time capital workin-progresscosts are transferred to mining property,plant and equipment. Development costs to maintainproduction are capitalised and amortised over theestimated useful life of the asset.Mining property, plant and equipment are amortisedon a straight line basis, over the lesser of thirty yearsor their expected useful lives, to estimated residualvalues in five-year bands. Assets defined undersection 36 (11) (d) of the Income Tax Act No 58 of1962 (as amended) are amortised in line with theallowances granted under the Act, which arematched to the expected useful lives of these assets.Section 36 (11) (d) assets include the following miningassets: housing for residential occupation, hospitals,schools and similar amenities, recreational facilities,surface railway systems and non-mining motorvehicles.Assets subject to finance leases are capitalised atcost with the related lease obligation recognised atthe same value. Capitalised leased assets aredepreciated over their estimated useful lives.Finance lease payments are allocated, using theeffective interest rate method, between the leasefinance cost, which is included in interest paid, andthe capital repayment, which reduces the liability tothe lessor. Operating lease rentals are chargedagainst operating profit as they become due.NON-MINING4. Property, plant and equipmentMININGCapitalised mine development cost includes expenditureincurred to develop new mining operations, to definefurther mineralisation in existing ore bodies and toexpand the capacity of the mine. Costs includeinterest capitalised during the construction periodwhere financed by borrowings and the net presentvalue of future decommissioning costs. Amortisationis first charged on new mining ventures from theNon-mining assets are stated at historical cost lessaccumulated depreciation.Depreciation is provided on the straight-line basisover the useful lives of these assets at the followingannual rates:Plant and equipment – 10% to 25%Motor vehicles – 25%Office furniture and equipment – 10% to 50%Land is not depreciated.141