Events 2005 - ChartNexus

Notes to the Financial Statements 31 December 2005
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
5.7 Investments (Continued)
(iii) Other investments
Investments in quoted shares held as short term investments are stated at the lower of cost and market value.
5.8 Impairment of assets
The carrying amounts of the Group’s and Company’s assets other than inventories, deferred tax assets, and financial assets
(other than investments in subsidiary companies), are reviewed at each balance sheet date to determine whether there is
any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated and an impairment
loss is recognised whenever the recoverable amount is less than the carrying amount of the asset.
An impairment loss is recognised in the income statement immediately except for the impairment on a revalued asset
where the impairment loss is recognised directly against the revaluation reserve account to the extent of the surplus
credited from the previous revaluation for the same assets with the excess of the impairment loss charged to the income
statement.
All reversal of an impairment loss is recognised as income immediately in the income statement except for the reversal of
an impairment loss on revalued assets where the reversal of the impairment loss is treated as a revaluation increase and
credited to the revaluation reserve account of the same asset.
An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. An
impairment loss is reversed if there has been a change in estimate used to determine the recoverable amount.
5.9 Payables
Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services
rendered.
5.10 Provisions
Provisions are recognised when there is a present obligation, legal or constructive, as a result of a past event, when it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
5.11 Employee benefits
5.11.1 Short term employee benefits
Wages, salaries, social security contributions, paid annual leave, paid sick leave, bonuses and non-monetary benefits are
recognised as an expense in the financial year when employees have rendered their services to the Group and the
Company.
Short term accumulating compensated absences such as paid annual leave are recognised as an expense when employees
render services that increase their entitlement to future compensated absences. Short term non-accumulating
compensated absences such as sick leave are recognised when the absences occur.
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