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NOTES TO FINANCIAL STATEMENTS
For the fnancial year ended 31 March 2014
2. Summary of significant accounting policies (cont’d)
2.7 Associated companies (cont’d)
The Group’s share of the proft or loss of its associates is the proft attributable to equity holders of the associate.
When the Group’s share of losses in associated companies equals or exceeds its interest in the associated companies, the Group does not
recognise further losses, unless it has incurred obligations or made payments on behalf of the associated companies.
After application of the equity method, the Group determines whether it is necessary to recognise an additional impairment loss on the
Group’s investment in its associated companies. The Group determines at the end of each reporting period whether there is any objective
evidence that the investment in the associated companies is impaired. If this is the case, the Group calculates the amount of impairment as
the difference between the recoverable amount of the associated companies and its carrying value and recognises the amount in proft or
loss.
Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.
Upon loss of signifcant infuence over the associated companies, the Group measures and recognises any retained investment at its fair
value. Any difference between the carrying amount of the associated companies upon loss of signifcant infuence and the fair value of the
aggregate of the retained investment and proceeds from disposal is recognised in proft or loss.
2.8 Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property, plant and equipment other
than freehold land and buildings are measured at cost less accumulated depreciation and any accumulated impairment losses. The cost
includes the cost of replacing part of the property, plant and equipment and borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying property, plant and equipment. The accounting policy for borrowing costs is set out in Note 2.16.
The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefts
associated with the item will fow to the Group and the cost of the item can be measured reliably.
When signifcant parts of property, plant and equipment are required to be replaced in intervals, the Group recognises such parts
as individual assets with specifc useful lives and depreciation, respectively. Likewise, when a major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfed. All other repair and
maintenance costs are recognised in proft or loss as incurred.
Freehold land and buildings and leasehold buildings are measured at fair value less accumulated depreciation and impairment losses
recognised after the date of the revaluation. Valuations are performed with suffcient regularity to ensure that the carrying amount does not
differ materially from the fair value of the freehold land and building and leasehold buildings at the end of the reporting period.
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