Notes to the Summary Group Financial Statements continued

For the Year Ended 30 June 2019

4. Property, Plant and Equipment continued

Depreciation

Depreciation is charged to write down the value of the asset on a straight line basis to an estimated residual value over their economic lives. Land and work in progress are not depreciated.

Impairment of asset

The asset value is written down immediately to its recoverable amount if the asset’s carrying value is greater than its estimated recoverable amount.

Disposal of asset

Gains and losses arising on disposal are determined as the difference between the sale proceeds and the carrying amount of the asset. This is recognised in profit or loss. Any balance in the revaluation reserve relating to this asset is transferred to retained earnings.

5. Property Assets – Investment Properties

Key Judgements and Estimates

In estimating the fair value of investment properties, the Group engaged independent registered valuers and have undertaken an independent peer review process on sensitive investment properties where another independent registered valuer is engaged.

Recognition and Measurement

Investment Property includes properties held to earn rental income and/or for capital appreciation that are not occupied by the Group. These properties are measured at fair value on an annual basis. Gains or losses arising from a change in fair value are included in profit or loss in the period in which they arise.