Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 71

2.3 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are held with a view to generate economic benefit from it for more than one period of use in the production or supply of goods or services or for administrative purposes and are not acquired for resale purposes. All property, plant and equipment items are initially recognised at cost. Thereafter it is measured with reference to the cost of the asset less accumulated depreciation and accumulated impairments. • The cost of property, plant and equipment includes the following: purchase price including import duties, non-refundable purchase taxes and costs directly attributable to bringing an asset to the location and condition necessary to operate as intended by management, less trade discounts and rebates. • Property, plant and equipment with a cost of more than R7 000 are capitalised, while assets with a cost of less than R7 000 are written off against operating profit. • Profits and losses on sale of property, plant and equipment are calculated on the basis of their carrying values and are accounted for in operating profit. • With the replacement of a part of an item of property, plant and equipment, the replaced part is derecognised. The replacement part shall be recognised according to the recognition criteria as an individual asset with specific useful life and depreciation. The carrying values of property, plant and equipment are considered for impairment when the events or changes in circumstances indicate that the carrying values are no longer &V6fW&&Rg&G2gWGW&RW6R"&VƗ6FbFR76WG2ࠐFW&V6F267VFVBfVBW&6VFvR&62fW"FRWV7FVBW6VgVƖfRBFRfvr&FW3P@*Х60'VFw2B&fVVG0BBWVV@fV6W0У"ÃP"PrR320#FW&V6F&Vv2vV76WB2f&Rf"W6RWfVbB2BWB'&VvBFW6RV6'BbFVb&W'GB@WVVBvF67Bv626vf6B&VFFFRFF67BbFRFV2FW&V6FVB6W&FVǒB2BFW&V6FVB2@2FVVVBFfRVƖ֗FVBƖfRFRW6VgVƖfRWFBbFW&V6FB&W6GVfVRb&W'GBBWVVB&R&WfWvVBBV6&W'FrFFR@FW7FVB&7V7FfVǒb&&FRFRWfVF2&W7V7BbFRW6VgVƖfRB&W6GVfVRb76WG26ǒ&RFWFW&֖V@67W&FVǒvVFV2b&W'GBBWVVB&6FRVBbFV"ƗfW2W6VgVƖfRB&W6GVfVRWfVF26&W7V@7&V6VB"FV7&V6VBFW&V6FWV6RbFR&W6GVfVRb76WBWV2G26''rVBFR76WN( 2FW&V6F6&vR2W&VW72BVFG2&W6GVfVR7V'6WVVFǒFV7&V6W2FVB&VrFR76WN( 26''rVB6VvW6&VƖ֗FVB&Vrbsc#b4TtU4$TTd45DDTTE2#s