Annual Report 10/11 - ACL Cables PLC

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income statement in the yearin which they arise.Investment properties are de-recognized when disposed, or permanently withdrawn from usebecause no future economic benefits are expected.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