CREDUT UNION REPORT 2013.pdf April 2013 | Page 61

NOTES TO THE FINANCIAL STATEMENTS AT 31ST DECEMBER, 2013 (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (b) New accounting Standards, Amendments and Interpretations (continued) IAS 32 Financial instruments: Presentation – Offsetting financial assets and financial liabilities – Effective for annual periods beginning on or after 1st January, 2014 IAS 36 Impairment of assets – Recoverable amount disclosures for non-financial assets - Effective for annual period beginning on or after 1st January, 2014. IAS 39 Financial instruments: recognition and measurement - Novation of derivatives and continuation of hedge accounting – Effective for annual period beginning on or after 1st January, 2014. IFRIC Levies – Effective for annual periods beginning on or after 1st January, 2014. (c) Property, Plant and Equipment The Credit Union’s assets are stated at cost less accumulated depreciation. Subsequent costs are included in the assets carrying amounts or are recognised as a separate asset, as appropriate, only when it is probable that future econom ic benefits associated with the item will flow to the Credit Union and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Increases in the carrying amount arising on revaluation of land and buildings are credited to revaluation surplus in equity. Decreases that offset previous increases of the same asset are charged against the surplus directly in equity; all other decreases are charged to the statement of income. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or re-valued amounts to their residual values over their estimated useful lives. The rates used are as follows: Per annum 60 Buildings Plant and Machinery (ATM) Motor vehicle Furniture and equipment Computers 2.5% 25% 20% 10% 33%