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When the grant relates to an asset, the cost of the asset is shown at gross value and grant thereon is treated as capital
grant which is recognized as income in statement of profit and loss over the period and in proportion in which depreciation
is charged.
When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related
costs, for which it is intended to compensate, are expensed.
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and
released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset.
When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current
applicable market rate, the effect of this favorable interest is regarded as a government grant. The loan or assistance is
initially recognized and measured at fair value and the government grant is measured as the difference between the initial
carrying value of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy
applicable to financial liabilities.
u.
Unless specifically stated to be otherwise, these policies are consistently followed.
2.4 Significant accounting judgements, estimates and assumptions
The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions are continuously evaluated
and are based on management’s experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of assets or liabilities affected in future periods.
In particular, the Company has identified the following areas where significant judgements, estimates and assumptions are
required. Further information on each of these areas and how they impact the various accounting policies are described below
and also in the relevant notes to the financial statements. Changes in estimates are accounted for prospectively.
Judgements
In the process of applying the Company’s accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognized in the financial statements:
Contingencies
Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal,
contractor, land access and other claims. By their nature, contingencies will be resolved only when one or more uncertain
future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently
involves the exercise of significant judgments and the use of estimates regarding the outcome of future events.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the consolidated
financial statements were prepared. Existing circumstances and assumptions about future developments, however, may
change due to market change or circumstances arising beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
Notes on the consolidated financial statements
for the year ended 31 March 2017