Loncor Resources Inc. | CIK:0001472619 | 3

  • Filed: 5/4/2018
  • Entity registrant name: Loncor Resources Inc. (CIK: 0001472619)
  • Generator: Compliance Xpressware
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1472619/000106299318001924/0001062993-18-001924-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1472619/000106299318001924/ln-20171231.xml
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  • EDGAR Dashboard: https://edgardashboard.xbrlcloud.com/edgar-dashboard/?cik=0001472619
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  • ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory

    h)

    Property, Plant and Equipment (“PPE”)

    i. Recognition and measurement

    Items of PPE are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials, directed labor and any other cost directly attributable to bring the asset to the location and condition necessary to be capable of operating in the manner intended by the Company.

    ii. Subsequent costs

    The cost of replacing part of an item of PPE is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized and included in net loss. If the carrying amount of the replaced component is not known, it is estimated based on the cost of the new component less estimated depreciation. The costs of the day-to-day servicing of property, plant and equipment are recognized in the statement of loss.

    iii. Depreciation

    Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed to determine whether a component has an estimated useful life that is different from that of the remainder of that asset, in which case that component is depreciated separately. Depreciation is recognized in profit or loss over the estimated useful lives of each item or component of an item of PPE as follows:

      Field camps and equipment straight line over 4 Years
           
      Furniture and fixtures straight line over 4 Years
           
      Office and communications equipment straight line over 4 Years
           
      Vehicles straight line over 4 Years
           
      Leasehold improvements straight line over the lease term

    Depreciation methods, useful lives and residual values are reviewed annually and adjusted, if appropriate. Depreciation commences when an asset is available for use. Changes in estimates are accounted for prospectively.