Page 91 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
89
3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g) Impairment (Continued)
(ii) Non-financial assets (Continued)
The Group’s corporate assets do not generate separate cash inflows and are utilised
by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and
consistent basis and tested for impairment as part of the testing of the CGU to which
the corporate asset is allocated.
Impairment losses are recognised in profit or loss. Impairment losses recognised in
respect of CGUs are allocated first to reduce the carrying amount of any goodwill
allocated to the CGU (group of CGUs) and then reduce the carrying amounts of the
other assets in the CGU (group of CGUs) on a pro rata basis.
Impairment losses recognised in prior periods are assessed at each reporting date
for any indications that the loss has decreased or no longer exists. An impairment
loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. 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 had been
recognised.
(h) Non-current assets held for sale
Non-current assets comprising assets and liabilities, that are expected to be recovered
primarily through sale rather than through continuing use, are classified as held for sale
under current assets. Immediately before classification as held for sale, the assets and
liabilities are measured in accordance with the applicable FRSs. Thereafter the assets, or
disposal group, are generally measured at the lower of their carrying amount and fair value
less costs to sell except for the following assets which are measured in accordance with
applicable FRSs:
(a) Deferred tax assets (FRS 12 – Income Taxes);
(b) Financial assets within the scope of FRS 39 – Financial Instruments: Recognition and
Measurement; and
(c) Non-current assets that are accounted for in accordance with the fair value model
in FRS 40 – Investment Property.