2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.17 Non-current assets (or disposal groups) classified as assets held for sale (continued)
Immediately before classification as held for sale, the measurement of the non-current assets is brought up-to-date
in accordance with applicable MFRS. Then, on initial classification as held for sale, non-current assets (other than
investment properties, deferred tax assets, employee benefits assets, financial assets and inventories) are measured
in accordance with MFRS 5 that is at the lower of carrying amount and fair value less costs to sell. Any differences
are included in the profit or loss.
2.18 Inventories
Inventories are stated at the lower of cost (determined on the weighted average basis) and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.
Costs of purchased inventory are determined after deducting rebates, discounts and the amount of goods and services
tax (GST), except where the amount of GST incurred is not recoverable from the government. When the amount of
GST incurred is not recoverable from the government, the GST is recognised as part of the cost of purchased
inventory.
2.19 Cash and cash equivalents
For the purpose of the statement of cash flows, cash equivalents are held for the purpose of meeting short-term cash
commitments rather than for investment or other purposes. Cash and cash equivalents comprise cash on hand,
deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of
3 months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts.
In the statement of financial position, banks overdrafts are shown within borrowings in current liabilities.
2.20 Trade payables
Trade payables represent liabilities for goods or services provided to the Group prior to the end of financial year which
are unpaid. Trade payables are classified as current liabilities unless payment is not due within 12 months after the
reporting period. If not, they are presented as non-current liabilities.
Trade payables are recognised initially at fair value, with the amount of goods and services tax (GST) included. The
net amount of GST payable to the government is presented as GST payable within accruals in the statement of
financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows which
are recoverable from, or payable to, the government are classified as operating cash flows.
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NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
