GOING
THE DISTANCE
EUROSPORTS
GLOBAL
.64
NOT E S TO T HE
F I NANC I A L S TAT EMEN T S
YEAR ENDED
31 MARCH, 2016
2.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION (CONT¡¯D)
2A.
Significant accounting policies (cont¡¯d)
Property, plant and equipment (cont¡¯d)
Cost also includes acquisition cost, borrowing cost capitalised and any cost directly attributable to bringing the asset
or component to the location and condition necessary for it to be capable of operating in the manner intended by
management. Subsequent costs are recognised as an asset only when it is probable that future economic benefits
associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repairs
and maintenance are charged to profit or loss when they are incurred.
Leases
Leases are classified as finance leases if substantially all the risks and rewards of ownership are transferred to the
lessee. All other leases are classified as operating leases. At the commencement of the lease term, a finance lease
is recognised as an asset and as a liability in the statement of financial position at amounts equal to the fair value of
the leased asset or, if lower, the present value of the minimum lease payments, each measured at the inception of
the lease. The discount rate used in calculating the present value of the minimum lease payments is the interest rate
implicit in the lease, if this is practicable to determine, the lessee¡¯s incremental borrowing rate is used. Any initial
direct costs of the lessee are added to the amount recognised as an asset. The excess of the lease payments over
the recorded lease liability are treated as finance charges which are allocated to each reporting year during the lease
term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents
are charged as expenses in the reporting years in which they are incurred. The assets are depreciated as owned
depreciable assets. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of
the leased assets are classified as operating leases.
For operating leases, lease payments are recognised as an expense in profit or loss on a straight-line basis over the
term of the relevant lease unless another systematic basis is representative of the time pattern of the user¡¯s benefit,
even if the payments are not on that basis. Lease incentives received are recognised in profit or loss as an integral
part of the total lease expense. Rental income from operating leases is recognised in profit or loss on a straight-line
basis over the term of the relevant lease unless another systematic basis is representative of the time pattern of the
user¡¯s benefit, even if the payments are not on that basis. Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over
the lease term.
Segment reporting
The group discloses financial and descriptive information about its reportable segments. Reportable segments are
operating segments or aggregations of operating segments that meet specified criteria. Operating segments are
components about which separate financial information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing performance. Generally, financial information
is reported on the same basis as is used internally for evaluating operating segment performance and deciding how
to allocate resources to operating segments.
