55
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December, 2012
(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)
2. Significant accounting policies
(continued)
(vi) Property, plant and equipment
(continued)
Depreciation is provided on the straight line or
reducing balance basis at rates estimated to write-
off the assets over their estimated useful lives.
The estimated useful lives of assets are reviewed
periodically, taking account of commercial and
technological obsolescence as well as normal wear
and tear, and the depreciation rates are adjusted if
appropriate.Where the carrying amount of an asset
is greater than its estimated recoverable amount,
it is written down immediately to its recoverable
amount.
Current rates of depreciation are:
Buildings
-
2% – 4%
Plant, machinery and equipment -
3% – 25%
Motor vehicles
-
10% – 25%
Office furniture and equipment
-
10% – 33%
Leasehold land and improvements are amortised
over the remaining term of the lease. Freehold land
and capital work-in-progress are not depreciated.
The limestone reserves contained in the leasehold
land at a subsidiary is valued at fair market value
determined at the date of acquisition of the
subsidiary. A depletion charge is recognised based
on units of production from those reserves.
All other limestone reserves which are contained
in lands owned by the Group are not carried at fair
value but the related land is stated at historical cost.
An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected from its use
or disposal. Any gain or loss arising on the de-
recognising of the asset (calculated as the
difference between the net disposal proceeds and
the carrying amount of the asset) is included in
the statement of income in the year the asset is
derecognised.
(vii) Inventories
Plant spares, raw materials and consumables are
valued at the lower of weighted average cost and
net realisable value. Net realisable value is arrived
at after review by technical personnel.
Work in progress and finished goods are valued at
the lower of cost, including attributable production
overheads, and net realisable value. Net realisable
value is the estimate of the selling price less the
costs of completion and direct selling expenses.
(viii) Foreign currency translation
The consolidated financial statements are
presented inTrinidadandTobagodollars (expressed
in thousands), which is the Parent’s functional and
presentation currency. Each entity in the Group
determines its own functional currency and items
included in the financial statements of each entity
are measured using that functional currency.
Foreign currency transactions
Transactions in foreign currencies are initially
recorded by Group entities in their functional
currency at the rate ruling at the date of the
transaction. Monetary assets and liabilities de-
nominated in foreign currencies are translated at
the foreign currency spot rate of exchange ruling
at the reporting date. Non-monetary assets and
liabilities that are measured in terms of historical
cost in a foreign currency are translated using
the exchange rates as at the dates of the initial
transactions. Exchange differences on foreign cur-
rency transactions are recognised in the statement
of income.
Foreign entities
On consolidation, assets and liabilities of foreign
entities are translated into Trinidad and Tobago
dollars at the rate of exchange ruling at the financial
reporting date and their statements of income are
translated at the weighted average exchange rates
for the year. The exchange differences arising on re-
translation are recognised in other comprehensive
income.
(ix) Deferred expenditure
The cost of installed refractories, chains and
grinding media is amortised over a period of six to
twelve months to match the estimated period of
their economic usefulness.
