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