Page 84 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
82
3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Foreign currency (Continued)
(ii) Foreign operations (Continued)
When the settlement of a monetary item receivable from or payable to a foreign
operation is neither planned nor likely in the foreseeable future, foreign exchange
gains and losses arising from such a monetary item are considered to form part of a
net investment in a foreign operation. These are recognised in other comprehensive
income, and are presented in the foreign currency translation reserve in equity.
(c) Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both, or are being constructed or developed for future use as investment
property. Investment properties are stated at initial cost on acquisition, and at fair value
thereafter, with any change therein recognised in profit or loss.
Cost includes expenditure that is directly attributable to the acquisition of the investment
property. The cost of self-constructed investment property includes the cost of materials
and direct labour, any other costs directly attributable to bringing the investment property
to a working condition for their intended use and capitalised borrowing costs.
Any gain or loss on disposal of an investment property (calculated as the difference
between the net proceeds from disposal and the carrying amount of the item) is recognised
in profit or loss.
Valuations are determined in accordance with the Trust Deed, which requires the investment
properties to be valued by independent registered valuers at least once a year.
(d) Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation
and accumulated impairment losses. Cost includes expenditure that is directly attributable
to the acquisition of the asset.
When parts of an item of property, plant and equipment have different useful lives, they
are accounted for as separate items (major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment (calculated as the
difference between the net proceeds from disposal and the carrying amount of the item)
is recognised in profit or loss.