NOTES TO THE FINANCIAL STATEMENTS
SECTION A How the numbers are calculated CONTINUED
A7 TRADE AND OTHER PAYABLES
As at 30 June
Trade accounts payable
Payroll related payables
Total trade and other payables
Trade and other payables are unsecured, non-interest bearing and typically paid within 30 days.
Movement in provisions
Opening balance as at 1 July 2018
Accrued balance utilised
Additional provisions raised
Closing balance as at 30 June 2019 2,254 The provisions balance includes an onerous airfield lighting contract and a staff restructuring provision. Other provisions relate primarily to expected costs to remove known asbestos. It is expected all sums provided for will be utilised or paid within one year. 1,053 640 561 A8 PROPERTY, PLANT & EQUIPMENT, INTANGIBLES AND ASSETS AVAILABLE FOR SALE Recognition and measurement All classes of property, plant and equipment and intangibles are initially recorded at cost. Cost is determined by including all charges directly associated with bringing the assets to their location in working condition. Capital work in progress includes expenditure on partially completed assets that Management expects will form part of the asset cost at completion. Where assets are generated internally, costs are only capitalised once a formal investment case has been prepared and approved in line with Airways’ delegated financial authority policy. The investment case must demonstrate that: • the economic and other benefits of the asset are clearly articulated and consistent with Airways’ strategy • the cost associated with the project is within Airways’ budget and can be reliably measured • there are sufficient staffing and technical resources available to complete the project (either internally or externally) • the asset to be created is technically feasible. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to Airways and the cost of the item can be measured reliably. The carrying amount of any replaced parts is written off. Depreciation and amortisation The cost of all fixed and intangible assets (excluding freehold land and work in progress), less their estimated residual value, is written off on a straight line basis over the asset’s estimated useful economic life. Asset useful lives and residual values are assessed annually and adjusted if required.
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