Plan Worldwide Annual Review and Combined Financial ...

i. Investments
Investments that Plan has the intent and ability to hold to maturity are classified as held to maturity and are included in either current or
non-current assets as appropriate. All other investments held by Plan are designated as available for sale and are included in current assets
unless it is anticipated that they will not be sold within twelve months of the balance sheet date.
Investments available for sale are carried at fair value, whilst investments held to maturity are carried at amortised cost. Realised gains and
losses arising from changes in the fair value of assets available for sale are included in the combined income statement in the period in which
they are realised. Unrealised gains and losses are recorded in a separate category of reserves and the amounts arising in the year are recorded
in the combined statement of comprehensive income and expenditure.
Plan assesses at each balance sheet date whether there is objective evidence that a financial asset is impaired. In the case of equity securities
classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered an indicator that the
securities are impaired. In such cases the cumulative loss is removed from reserves and recognised in the combined income statement.
j. Other financial assets – interests in trusts
Plan is a beneficiary of certain trusts administered and managed by third parties. Plan’s interests in these trusts are recorded at fair value and
classified as current or non-current assets as appropriate.
k. Property, plant and equipment and intangible assets
Property, plant and equipment and intangible assets are stated at cost less accumulated depreciation and amortisation and impairment losses.
Intangible assets represent software held for internal use, which is either purchased, donated or developed internally. Costs relating to software
developed internally are capitalised when the qualifying project reaches the development stage as defined in IAS 38, Intangible Assets.
The cost of assets received as gifts in kind is determined as set out in note 1d. Depreciation and amortisation are provided under the
straight-line method over the following estimated useful lives of the assets:
Buildings
5 - 50 years
Equipment
3 - 10 years
Intangible assets:
Purchased software Lower of 5 years or the period of the licence
Other intangibles
3 - 5 years
Land is not depreciated. Gains or losses on disposals in the year are included in the combined income statement.
Property, plant and equipment and intangible assets are subject to review for impairment either where there is an indication of a reduction in
their recoverable amount or, in the case of intangible assets not yet available for use, on an annual basis. Any impairment is recognised in the
combined income statement in the year in which it occurs.
l. Inventory
Humanitarian supplies are valued at cost with obsolete stock written off and are included in programme expenditure when distributed to
beneficiaries. Cost comprises the cost of purchase and is determined using the first-in, first-out method.
The net realisable value of inventory held for trading activities is the estimated selling price in the ordinary course of business less applicable
variable selling expenses.
m. Non-current liabilities – termination benefits and pension obligations
The amount accrued for termination benefits represents Plan’s estimated obligation to employees who have an unconditional legal entitlement
to termination benefits, either under local statute or their employment contract.
Plan Netherlands and Plan Norway maintain defined benefit pension plans. The amount recognised in respect of these pension plans represents
the present value of the pension obligations less the fair value of the plan assets, as adjusted for unrecognised prior service costs/benefits
and unrecognised actuarial gains/losses. Pension obligations (and costs) are measured using the projected unit credit method. For individual
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