Notes to the financial statements
Year ended 31 March 2016
3 Significant accounting policies (continued)
(h)
Impairment (continued)
(ii)
Non-financial assets
The carrying amounts of Group’s non-financial assets, other than investment properties, are reviewed at
each reporting date to determine whether there is any indication of impairment. If any such indication
exists, the assets’ recoverable amounts are estimated.
An impairment loss is recognised in the Statement of Total Return if the carrying amount of an asset or its
cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable
asset group that generates cash flows that are largely independent from other assets and groups.
Impairment losses are recognised in the Statement of Total Return, unless it reverses a previous revaluation
credited to Unitholders’ funds, in which case it is charged to Unitholders’ funds.
Calculation of recoverable amount
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset or cash-generating unit. For the purpose of impairment testing,
assets that cannot be tested individually are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflows of other assets
or cash-generating unit.
Reversals of impairment
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that
the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent
that the asset’s carrying amount does not exceed the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss had been recognised.
(i)
Taxation
Taxation on the returns for the year comprises current and deferred tax. Current and deferred tax are recognised
in the Statement of Total Return, except to the extent that they relate to items directly related to Unitholders’
funds, in which case it is recognised in Unitholders’ funds.
Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax
rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of
previous periods.
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A-REIT ANNUAL REPORT
2015/2016
