CAV Annual Report 2021

CENTURION AEROSPACE VILLAGE NPC Registration Number: 2000/006996/08 ANNUAL FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES

their recoverable amount. Impairment losses and reversal of impairment losses are recognised in the statement of comprehensive income. Gains and losses ondisposal of property, plant and equipment are determined by reference to their carrying amount and are taken into account in determining operating surplus. The useful lives of items of property, plant and equipment have been assessed as follows: Item Useful Life Buildings 20 years Training equipment 2-6 years Furniture and fixtures 6 years Plant and machinery 5 years Motor vehicle 5 years Computer equipment 2 years Assets under construction n/a The residual value, useful life and depreciation method of each asset are reviewed at the end of each reporting period. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset. 1.3. INTANGIBLE ASSETS An intangible asset is recognised when: • It is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and • the cost of the asset can be measured reliably. An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are initially recognised at cost. Intangible assets are carried at cost less any accumulated amortisation and any impairment losses. The amortisation period and the amortisation method for intangible assets are reviewed every period-end. Amortisation is provided to write down the intangible assets, on a straight-line basis, to their residual values as follows:

Item

Useful Life

Computer software 2 years 1.4. FINANCIAL INSTRUMENTS Classification The company classifies financial assets and financial liabilities into the following categories: • Loans and receivables • Financial liabilities measured at amortised cost • Financial assets measured at fair value through surplus and deficit. Initial recognition and measurement Financial instruments are recognised initially when the company becomes a party to the contractual provisions of the instruments. The company classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. For financial instruments which are not at fair value through surplus or deficit, transaction costs are included in the initial measurement of the instrument. Transaction costs on financial instruments at fair value through surplus or deficit are recognised in surplus or deficit. Financial Assets Financial assets are initially measured at fair value plus direct transaction costs. Financial assets at fair value through surplus or deficit are subsequently measured at fair value with gains for losses being recognised in surplus or deficit. Other financial assets are subsequently measured at amortised cost, using the effective interest method. Financial Liabilities Financial liabilities are initially measured at fair value plus direct transaction costs. Financial liabilities that are designated on initial recognition as financial liabilities at fair value through surplus or deficit

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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