MHSC ANNUAL REPORT 2020

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Mine Health and Safety Council for the year ended March 31, 2020 Accounting Policies (continued)

The useful lives of items of property, plant and equipment have been assessed as follows:

Item

Depreciation method Average useful life

Office furniture

Straight line

10 years

Motor vehicles

Straight line

5 years

Computer equipment

Straight line

5‑10 years

Leasehold improvements

Straight line

remainder of lease period

Research equipment

Straight line

Duration of the contract and estimated useful life

Leased assets

Straight line

the shorter of the lease period or the useful life of the asset

The depreciation method used reflects the pattern in which the asset’s future economic benefits or service potential are expected to be consumed by the MHSC. The depreciation method applied to an asset is reviewed at least at each reporting date and, if there has been a significant change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset, the method is changed to reflect the changed pattern. Such a change is accounted for as a change in an accounting estimate. The MHSC assesses at each reporting date whether there is any indication that the MHSC expectations about the residual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the MHSC revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an 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. Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset. The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”