NOTES TO THE FINANCIAL STATEMENTS
Note 7: Plant and Equipment
2021 $
2020 $
At written down value
244,674
245,977
244,674
245,977
Movements in Carrying Amounts Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the financial year are as follows:
Plant and Equipment at cost
Balance as at 1 July 2020
244,674
Additions
131,555
Disposals
-
Depreciation
130,252
Balance as at 30 June 2021
245,977
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows: IT equipment – 2.5-4 years. Other equipment– 2.5-4.5 years The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Note 8: Impairment of non-financial assets At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where it is not possible to estimate the recoverable amount of an individual asset, or the asset does not generate largely independent cash inflows, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated to be close to its fair value. An impairment exists when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. A review was performed at reporting date and no impairment triggers were identified. Therefore no impairment of non- financial assets was made.
I GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 56
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