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2.17 Investment property
Investment properties include properties held to earn rental income, and/or for capital appreciation as well as investment
properties under construction. A property is also classifed as an investment property if it does not have an operating
lease in place, but is held with the intention of attaining an operating lease.
Investment properties are initially recognised at cost, including transaction costs. Subsequent to initial recognition,
investment properties are carried at fair value, representing open‑market value determined annually by external valuers.
Changes in fair value are recorded in the statement of comprehensive income.
Where a property interest is held under an operating lease, and is classifed as an investment property, the property
is recognised at the lower of fair value of the property and the present value of the minimum lease payments, with an
equivalent amount being recognised as a liability. Subsequent to initial recognition, the asset and liability are measured at
fair value with changes in fair value recognised in proft or loss.
2.18 Impairment of non‑fnancial assets
Assets that have an indefnite useful life are not subject to amortisation and are tested annually for impairment. Assets that
are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised when the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
Impairment losses are recognised frst against the revaluation reserves in respect of the impaired asset, and second as
an expense in the statement of comprehensive income.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash generating unit) is increased to
the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash
generating unit) in prior years. A reversal of an impairment loss is recognised in the statement of comprehensive income
immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated
as a revaluation increase.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifable cash fows (cash generating units). Non‑fnancial assets that suffered impairment, with the exception of
fshing quota, are reviewed for possible reversal of the impairment at each reporting date.
2.19 Trade and other payables
Trade payables and other accounts payable are recognised when the Group becomes obliged to make future payments
resulting from the purchase of goods and services. The amounts are unsecured and are usually paid within 30 days
of recognition. Trade and other accounts payable are recognised initially at fair value plus transaction costs and
subsequently measured at amortised cost using the effective interest method.
2.20 Interest bearing liabilities
Interest bearing liabilities are initially recognised at fair value, net of transaction costs incurred. Interest bearing liabilities
are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognised in the statement of comprehensive income over the period of the borrowings using the
effective interest method.
Borrowings are classifed as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the balance date.
2.21 Contributed equity
Ordinary shares are classifed as equity. Transaction costs arising on the issue of equity instruments are recognised
directly in equity as a reduction of the proceeds of the equity instrument. Transaction costs are the costs arising on the
issue of equity instruments, incurred directly in connection with the issue of those equity instruments and which would
not have been incurred had those instruments not been issued.
notes to the financial Statements continued