Fitzroy Learning Network Annual Report - Page 11

Fitzroy Learning Network Inc. Annual Financial Report For the year ended 30 June 2016 Notes to the Financial Statements Note 3 Significant accounting policies (continued) (j) Property,plant and equipment (continued) (ii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is recognised in the statement of profit or loss and other comprehensive income on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful lives for the current period are as follows: * equipment 3 years * property improvements 4 years Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. (k) New standards and interpretations for application in future periods The Association does not anticipate any change in accounting poli