Annual Report 10/11 - ACL Cables PLC

More documents

Recommendations

Info

ACL Cables PLC Annual Report 2010/11Notes to the Financial StatementsProvision for depreciation is calculated by using a straight-line method on the cost or valuationof all property, plant and equipment, other than freehold land, in order to write off such amountsover the estimated useful economic life of such assets.The estimated useful lives of the assets are as follows;AssetYearsFactory buildings 25 - 40Plant, machinery and accessories 8 - 10Factory equipment 8 - 10Electrical fittings 8 - 10Furniture, fixtures and fittings 4 - 10Office equipment 4 - 10Motor vehicles 4 - 5Tools and implements 4 - 10The Group’s policy up to 31.03.2006 was not to provide depreciation on property, plant andequipment purchased during the year while the full year’s depreciation was charged in the year ofdisposal.Commencing from 1st April 2006, depreciation is provided on all property, plant and equipmentfrom the month the assets are available for use up to the month of disposal.The useful life and residual value of assets are reviewed and adjusted if required, at the end ofeach financial year.2.6.2 Leases where the Company assumes substantially all the benefits and risks of ownershipare classified as finance leases. Finance leases are capitalised at the estimated present value ofthe underlying lease payments. Each lease payment is allocated between the liability and financecharges so as to achieve a constant rate on the finance balance outstanding. The correspondingrental obligations, net of finance charges are included in other long term payables. The interestelement of the finance charge is charged to the income statement over the lease period. Theproperty, plant and equipment acquired under finance leasing contracts is depreciated over theuseful life of the asset.Leases of assets under which all the risks and benefits of ownership are effectively retained by thelessor are classified as operating leases. Payments made under operating leases are charged to theincome statement on a straight line basis over the period of the lease.52
ACL Cables PLC Annual Report 2010/112.6.3 Properties held to earn rental income or properties held for capital appreciation or bothand is not occupied substantially for the supply of goods or services or in administration, andis not intended for sale in the ordinary course of business have been classified as investmentproperty. Investment properties are initially recognized at cost. Subsequent to initial recognitionthe investment properties are stated at fair value, which reflects market conditions as at balancesheet date.Gains or losses arising from changes in fair value are included in the income statement in the yearin which they arise.Investment properties are de-recognized when disposed, or permanently withdrawn from usebecause no future economic benefits are expected. Any gains or losses on retirement or disposalare recognized in the income statement in the year of retirement or disposal.Where the Company occupies a significant portion of the investment property, such investmentproperties are treated as property, plant and equipment in the financial statements and accountedfor as per SLAS - 18 (Revised 2005), Property, Plant and Equipment.2.6.4 Goodwill represents the excess or the cost of an acquisition over the fair value of the Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill acquired in abusiness combination is tested annually or more frequently if events or changes in circumstancesindicate that the carrying value may be impaired and carried at cost less accumulated impairmentlosses.Negative goodwill arising on an acquisition represents the excess of the fair value of the netassets acquired over the cost of acquisition. Negative goodwill is recognized immediately in theincome statement.2.6.5 All quoted and un-quoted securities, which are held as non-current investments, arevalued at cost less impairment losses. The cost of investment is the cost of acquisition inclusive ofbrokerage and costs of transaction. The carrying amounts of long term investments are reducedto recognise a decline which is considered other than temporary, in the value of investments,determined on an individual investment basis.In the Company’s financial statements, investments in subsidiaries have been accounted for atcost, net of any impairment losses which are charged to the income statement. Income from theseinvestments is recognized only to the extent of dividends received.53
Page 5 and 6: ACL Cables PLC Annual Report 2010/1
Page 53: ACL Cables PLC Annual Report 2010/1
Page 95 and 96: Corporate InformationCOMPANY NAMEAC

Annual Report 10/11 - ACL Cables PLC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?