Wellcom_FY11-Financial-Report

Depreciation is provided on property plant and

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Unformatted text preview: t of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition. Depreciation is provided on property, plant and equipment. Depreciation is calculated on a straight line basis so as to write off the net cost of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight line method. The estimated useful lives, residual values and depreciation method is reviewed at the end of each annual reporting period. The following estimated useful lives are used in the calculation of depreciation: Leasehold improvements Plant & equipment Equipment under finance lease Furniture, fixtures & fittings 6 years 3 - 20 years 3 - 6 years 5 years The above estimated useful lives are consistent with the prior year. 39 Wellcom Group Limited Notes to the Consolidated Financial Statements 2. Summary of significant accounting policies (continued) For personal use only u) Property, plant and equipment (continued) The carrying values of plant and equipment, leasehold improvements and equipment under finance lease are reviewed fo...
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