108
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.22 Fair value measurements (continued)
The Group measures the fair value of an asset or a liability by taking into account the characteristics of the asset or liability if market
participants would take these characteristics into account when pricing the asset or liability. The Group has considered the following
characteristics when determining fair value:
(a)
The condition and location of the asset; and
(b)
Restrictions, if any, on the sale or use of the asset.
The fair value measurement for a non-financial asset takes into account the ability of the market participant to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest
and best use.
The fair value of a financial or non-financial liability or an entity’s own equity instrument assumes that:
(a)
A liability would remain outstanding and the market participant transferee would be required to fulfil the obligation. The
liability would not be settled with the counterparty or otherwise extinguished on the measurement date; and
(b)
An entity’s own equity instrument would remain outstanding and the market participant transferee would take on the rights
and responsibilities associated with the instrument. The instrument would not be cancelled or otherwise extinguished on the
measurement date.
4.23 Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amounts would be recovered principally through a sale transaction
rather than through continuing use. For this to be the case, the assets shall be available for immediate sale in its present condition
subject only to terms that are usual and customary for sales of such assets and its sale must be highly probable. The probability of
shareholders’ approval (if required in the jurisdiction) is considered as part of the assessment of whether the sale is highly probable.
The sale is expected to qualify for recognition as a completed sale within one (1) year from the date of classification. However, an
extension of the period required to complete the sale does not preclude the assets from being classified as held for sale if the delay is
caused by events or circumstances beyond the control of the Group and there is sufficient evidence that the Group remains committed
to its plan to sell the assets.
Immediately before the initial classification as held for sale, the carrying amounts of the assets are measured in accordance with
applicable MFRSs. On initial classification as held for sale, non-current assets (other than investment properties, deferred tax assets,
employee benefits assets, and financial assets carried at fair value) are measured at the lower of its carrying amount before the initial
classification as held for sale and fair value less costs to sell. The differences, if any, are recognised in profit or loss as impairment loss.
Non-current assets held for sale are classified as current assets in the statement of financial position and are stated at the lower of
carrying amount immediately before initial classification and fair value less costs to sell and are not depreciated. Any cumulative
income or expense recognised directly in equity relating to the non-current asset classified as held for sale is presented separately.
If an asset is being classified as assets held for sale but subsequently, the criteria for such classification is not met, it will be reclassified
as non-current asset and will be measured at the lower of:
(i)
Its carrying amount before the asset was classified as held for sale, adjusted for any depreciation, amortisation or revaluations
that would have been recognised had the asset not been classified as held for sale; and
(ii)
Its recoverable amount at the date of the subsequent decision not to sell.
