Page 23 - CGC_Annual_Report_2014
P. 23
Annual Report 2013-2014
Financial Report for the Year Ended 31 August 2014
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2014
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Plant and equipment (cont.)
The cost of fixed assets constructed within the association includes the cost of
materials, direct labour, borrowing costs and an appropriate proportion of fixed and
variable overheads.
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 association and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to
the statement of profit or loss during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets, including buildings, is depreciated on a
straight-line basis over the asset’s useful life commencing from the time the asset is
held ready for use. The Clubhouse leasehold is depreciated over the shorter of
either the unexpired period of the lease or the estimated useful lives of the
improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate
Course establishment 2.5%
Clubhouse leasehold 2.5%
Course buildings 10%
Plant & equipment 10% to 33%
Motor vehicle and motorised cart 10% to 20%
The assets’ residual values and useful lives are reviewed and adjusted, if
appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount
if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the
carrying amount. These gains and losses are included in the statement of profit or
loss. When re valued assets are sold, amounts included in the revaluation relating to
that asset are transferred to members funds.
d. Impairment of Assets
At the end of each reporting period, the association reviews the carrying values of
its tangible and intangible assets to determine whether there is any indication that
those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and
value-in-use, is compared to the asset’s carrying value. Any excess of the asset’s
carrying value over its recoverable amount is expensed to the statement of profit or
loss.
Where it is not possible to estimate the recoverable amount of an individual asset,
the association estimates the recoverable amount of the cash-generating unit to
which the asset belongs.
6_0700 Page 6 of 22
Financial Report for the Year Ended 31 August 2014
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2014
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Plant and equipment (cont.)
The cost of fixed assets constructed within the association includes the cost of
materials, direct labour, borrowing costs and an appropriate proportion of fixed and
variable overheads.
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 association and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to
the statement of profit or loss during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets, including buildings, is depreciated on a
straight-line basis over the asset’s useful life commencing from the time the asset is
held ready for use. The Clubhouse leasehold is depreciated over the shorter of
either the unexpired period of the lease or the estimated useful lives of the
improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate
Course establishment 2.5%
Clubhouse leasehold 2.5%
Course buildings 10%
Plant & equipment 10% to 33%
Motor vehicle and motorised cart 10% to 20%
The assets’ residual values and useful lives are reviewed and adjusted, if
appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount
if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the
carrying amount. These gains and losses are included in the statement of profit or
loss. When re valued assets are sold, amounts included in the revaluation relating to
that asset are transferred to members funds.
d. Impairment of Assets
At the end of each reporting period, the association reviews the carrying values of
its tangible and intangible assets to determine whether there is any indication that
those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and
value-in-use, is compared to the asset’s carrying value. Any excess of the asset’s
carrying value over its recoverable amount is expensed to the statement of profit or
loss.
Where it is not possible to estimate the recoverable amount of an individual asset,
the association estimates the recoverable amount of the cash-generating unit to
which the asset belongs.
6_0700 Page 6 of 22
