APO Annual Report 2020

AUCKLAND PHILHARMONIA TRUST
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Notes to the consolidated and separate financial statements
4. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
e) Property, plant and equipment (cont’d)
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end. An asset’s carrying amount is written down immediately to its recoverable amount, or
recoverable service amount, if the asset’s carrying amount is greater than its estimated recoverable amount or
recoverable service amount.
Please refer to policy (g) on impairment of non-financial assets below.
iv. Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits or service potential are expected from its use or disposal.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included
in surplus or deficit.
f) Intangible assets
Intangible assets are initially measured at cost and consist of software for internal use.
All of the Group’s intangible assets are subsequently measured in accordance with the cost model, being cost (or
fair value for items acquired through non-exchange transactions) less accumulated amortisation and impairment.
Cost includes expenditure that is directly attributable to the acquisition of the asset.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates. All other expenditure is recognised in surplus or deficit, as incurred.
Amortisation is recognised in surplus or deficit on a straight-line basis over the estimated useful lives of each
amortisable intangible asset.
The estimated useful lives are:
Software
2 years
g) Impairment of non-financial assets
The carrying amounts of the Group's non-financial assets, are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is revised
accordingly. Impairment losses are recognised in surplus or deficit.
h) Foreign currencies
Transactions in foreign currencies are initially accounted for at the rate of exchange ruling on the date of the
transaction. Assets and liabilities denominated in foreign currency are reported at the statement of financial position
reporting date by applying the exchange rate on that date.
Exchange differences are recognised as income or expenses in the period in which they arise.
i) Equity and reserves
Accumulated surpluses
This represents the Group's accumulated surplus or deficit since the formation of the Group. Separate reserves
representing an allocation on the Group's funds are disclosed in note 20.
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