Page 96 - OneVue Annual Report 2015

Notes to the financial statements

Note 40. Summary of significant accounting policies (continued)

Impairment of financial assets
OneVue assesses at the end of each reporting period whether there is objective evidence that a financial asset or
group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment
losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred
after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the
estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. In the
case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the
security below its cost is considered an indicator that the assets are impaired.
Impairment testing of trade receivables is described in note 8.
Investments in associates
Associates are entities over which OneVue has significant influence but not control or joint control. Investments in
associates are accounted for using the equity method. Under the equity method, the share of the profits or losses
of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other
comprehensive income. Investments in associates are carried in the statement of financial position at cost plus
post-acquisition changes in OneVue's share of net assets of the associates. Dividends received or receivable from
associates reduce the carrying amount of the investment.
When OneVue’s share of losses in an associate equals or exceeds its interest in the associate, including any
unsecured long-term receivables, OneVue does not recognise further losses, unless it has incurred obligations or
made payments on behalf of the associate.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and
equipment (excluding land) over their expected useful lives as follows:
Plant, equipment, furniture, fittings, leasehold improvements – 3 to 5 years.
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the
lease or the estimated useful life of the assets, whichever is shorter.An item of property, plant and equipment is

96 - ONEVUE ANNUAL REPORT 2015