2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED) 2.13 Interests in joint arrangements (Continued) Investments in joint ventures (Continued) The results and assets and liabilities of joint ventures are incorporated in these financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for under SFRS(I) 5, from the date on which the investees become classified as held for sale. Under the equity method, investments in joint ventures are carried at cost as adjusted for post-acquisition changes in the Group’s share of the net assets of the joint venture, less any accumulated losses of individual investments. The profit or loss reflects the share of results of the operations of the joint venture. Distributions received from the joint venture reduce the carrying amount of the investment. Where there has been a change recognised in other comprehensive income by the joint venture, the Group recognises its share of such changes in other comprehensive income. Unrealised profits and losses are eliminated to the extent of the Group’s interest in the joint venture. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no impairment. The Group’s share of losses in a joint venture in excess of the Group’s interest in that joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint venture) are not recognised, unless the Group has incurred legal or constructive obligations or made payments on behalf of the joint ventures. If the joint venture subsequently reports profits, the Group resumes recognising its share of those profits only after its share of the profits equals the share of losses not recognised. Any goodwill arising on the acquisition of the Group’s interest in a joint venture is accounted for in accordance with the Group’s accounting policy for goodwill arising on such acquisitions (see above). The Company has accounted for its investments in joint ventures at cost less any accumulated impairment in its separate financial statements. The Group accounts for assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the accounting policies applicable to the particular assets, liabilities, revenues and expenses. Investments in joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Group as joint operators recognise in relation to their interests in joint operations: (i) their assets, including their shares of any assets held jointly; (ii) their liabilities, including their shares of any liabilities incurred jointly; (iii) their revenue from the sale of their shares of the output arising from the joint operations; (iv) their shares of the revenue from the sale of the output by the joint operations; and (v) their expenses, including their shares of any expenses incurred jointly. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in joint operations to the particular assets, liabilities, revenues and expenses. 2.14 Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. The cost of plant and equipment includes its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Dismantlement, removal or restoration costs are included as part of the cost of plant and equipment if the obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the plant and equipment. 75 ANNUAL REPORT 2024 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2024
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