Page 51 - Bauxite Resources Annual Report 2014

Annual Report 2014 Bauxite Resources | 49
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements cont.
49 Bauxite Resources Annual Report 2014
Subsequent measurement
Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.
Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value.
Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category are
presented in the income statement within other income or other expenses in the period in which they arise. Dividend income
from financial assets at fair value through profit or loss is recognised in the income statement as part of revenue from continuing
operations when the Group’s right to receive payments is established.
Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are
analysed between translation differences resulting from changes in amortised cost of the security and other changes in the
carrying amount of the security. The translation differences related to changes in the amortised cost are recognised in profit or
loss, and other changes in carrying amount are recognised in equity. Changes in the fair value of other monetary and non-
monetary securities classified as available-for-sale are recognised in equity.
Details on how the fair value of financial investments is determined are disclosed in note 2.
Impairment
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets
is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a
security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-
sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value,
less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised
in the income statement. Impairment losses recognised in the income statement on equity instruments classified as available-
for-sale are not reversed through the income statement.
(l) Property, plant and equipment
Property
Freehold land and buildings are carried at historical cost less, where applicable, any accumulated depreciation and impairment
losses. Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation surplus in
equity. Decreases that offset previous increases of the same asset are recognised against revaluation surplus directly in equity;
all other decreases are recognised in profit or loss.
Plant and equipment
All plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income
statement during the reporting period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets excluding freehold land, is depreciated using the reducing balance method to allocate
their cost, net of their residual values, over their estimated useful lives. Buildings are depreciated on a straight line basis.
The depreciation rates for each class of depreciable assets are:
Plant & equipment 7-67%
Motor vehicles 25-30%
Buildings 2.5%
Software 30-50%
Exploration Equipment 20-67%
Furniture & Fittings 10-40%
Computer equipment 20-50%