MCCU Annual Report - page 61

61
3.
Statement of Compliance, Basis of Preparation and Significant Accounting Policies (cont'd):
(e)
Property, Plant and Equipment (cont'd) -
Buildings
2 %
Furniture, Fixtures & Equipment
10%
Computer Equipment & Software
20%
Land is not depreciated.
(f)
Impairment -
NOTES TO THE FINANCIAL STATEMENTS - (CONT'D)
YEAR ENDED 31ST DECEMBER 2013
MANCHESTER CO-OPERATIVE CREDIT UNION (1977) LIMITED
Depreciation is provided on the straight-line basis by reference to cost or valuation, calculated at rates
estimated to write-off the relevant assets over their useful lives. The annual rates used are as follows:
Gains or losses on disposal of Property, Plant and equipment are determined by their carrying amount
and are taken into account in determining operating profit.
Property, plant and equipment are periodically reviewed for impairment. Where the carrying amount of
an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable
amount.
The carrying amount of the Credit Union's assets, other than loans to members (which are dealt with at
note 3(c), are reviewed at the date of each statement of financial position to determine whether there is
any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated at
that date. An impairment loss is recognised whenever the carrying amount of an asset or its cash-
generating unit exceeds its recoverable amount. Impairment losses are recognised in the statement of
comprehensive income.
In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used
to determine the recoverable amount.
In respect of held-to-maturity investments and receivables, the impairment loss is reversed if the
subsequent increase in recoverable amount can be related objectively to an event occurring after the
impairment loss was recognised.
An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortisation, if no impairment
loss has been recognised.
The recoverable amount of theCredit Union's held-to-maturity investments and receivables is calculated
as the present value of expected future cash flows, discounted at the original effective interest rate
inherent in the asset. Receivables with a short duration are not discounted.
MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
I...,51,52,53,54,55,56,57,58,59,60 62,63,64,65,66,67,68,69,70,71,...126
Powered by FlippingBook