| c) |
Equipment |
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Recognition and Measurement |
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On initial recognition, equipment is valued at cost, being the purchase price and directly attributable cost of acquisition or construction required to bring the asset to the location and condition necessary to be capable of operating in the manner intended by the Company, including appropriate borrowing costs and the estimated present value of any future unavoidable costs of dismantling and removing items. The corresponding liability is recognized within provisions. |
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Equipment is subsequently measured at cost less accumulated depreciation, less any accumulated impairment losses. |
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When parts of an item of equipment have different useful lives, they are accounted for as separate items (major components) of equipment. |
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Gains and Losses |
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Gains and losses on disposal of an item of equipment are determined by comparing the proceeds from disposal with the carrying amount, and are recognized net within other income in profit or loss. |
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Depreciation |
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Depreciation and amortization rates applicable to each category of equipment on a declining basis are as follows: |
| Furniture and equipment | 20% |
| Computer equipment | 30% |
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Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. |
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