ANNUAL%20REPORT%202015%20eng

Notes to Consolidated Financial Statements
2 SIGNIFICANT ACCOUNTING POLICIES (Continued)
(k)
Impairment of assets (Continued)
(i)
Impairment of investment in debt and equity securities and other receivables (Continued)
– For available-for-sale securities, the cumulative loss that has been recognised in the fair
value reserve is reclassified to profit or loss. The amount of the cumulative loss that is
recognised in profit or loss is the difference between the acquisition cost (net of any principal
repayment and amortisation) and current fair value, less any impairment loss on that asset
previously recognised in profit or loss.
Impairment losses recognised in profit or loss in respect of available-for-sale equity
securities are not reversed through profit or loss. Any subsequent increase in the fair value
of such assets is recognised in other comprehensive income.
Impairment losses are written off against the corresponding assets directly, except for impairment
losses recognised in respect of trade and other receivables, whose recovery is considered
doubtful but not remote. In this case, the impairment losses for doubtful debts are recorded
using an allowance account. When the Group is satisfied that recovery is remote, the amount
considered irrecoverable is written off against trade and other receivables directly and any
amounts held in the allowance account relating to that debt are reversed. Subsequent recoveries
of amounts previously charged to the allowance account are reversed against the allowance
account. Other changes in the allowance account and subsequent recoveries of amounts
previously written off directly are recognised in profit or loss.
(ii)
Impairment of other assets
Internal and external sources of information are reviewed at the end of each reporting period to
identify indications that the following assets may be impaired or an impairment loss previously
recognised no longer exists or may have decreased:
– property, plant and equipment;
– construction in progress;
– lease prepayments;
– intangible assets;
– other non-current assets (excluding receivables); and
– investment in subsidiaries, associates and joint ventures in the Company’s statement of
financial position.
Annual Report 2015
127