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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:
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
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- Spring '14