N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
3 Significant accounting policies (continued)
(e) Non-current assets held for sale
Non-current assets comprising assets and liabilities, that are expected to be recovered primarily through sale rather
than through continuing use, are classified as held for sale. Immediately before classification as held for sale, the
assets and liabilities are measured in accordance with applicable FRSs. Thereafter, the assets or disposal group, are
generally measured at the lower of their carrying amount and fair value less costs to sell except for non-current assets
that are accounted for in accordance with the fair value model in FRS 40
Investment Property
.
Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are
recognised in the Statement of Total Return. Gains are not recognised in excess of any cumulative impairment loss.
Non-current assets held for sale comprise property held for sale.
(f)
Plant and equipment
Plant and equipment
are stated at cost less accumulated depreciation and impairment losses. Cost includes
expenditure that is directly attributable to the acquisition of the asset.
Subsequent expenditure relating to plant and equipment is added to the carrying amount of the asset when it is
probable that future economic benefit in excess of the originally assessed standard of performance of the existing
asset will flow to the Group. All other subsequent expenditure is recognised as an expense in the period in which it
is incurred.
Depreciation is provided on the straight-line basis over the estimated useful lives of each component of an item of
plant and equipment as follows:
Furniture and fixtures
5 – 7 years
Equipment
5 – 10 years
Computers and office equipment 1 – 5 years
Gains or losses arising from the retirement or disposal of plant and equipment are determined as the difference
between the net disposal proceeds and the carrying amount of the asset, and are recognised in the Statement of
Total Return on the date of retirement or disposal.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted as
appropriate.
(g) Finance leases
Leases which the Group has substantially transferred all the risks and rewards incidental to ownership of the asset
to the lessee are classified as finance leases. The leased asset is derecognised and the present value of the lease
receivable (net of initial direct costs for negotiating and arranging the lease) is recognised as finance lease receivable
on the Balance Sheet. The difference between the gross receivable and the present value of the lease receivable is
recognised as unearned interest income.
Each lease payment received is applied against the gross investment in the finance lease receivable to reduce both
the principal and the unearned interest income. The interest income is recognised in the Statement of Total Return
on a basis that reflects a constant periodic rate of return on the net investment in the finance lease receivable.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
