Page 40 - Annual Report 2017

December 31, 2017
(expressed in United States Dollars)

2 Summary of significant accounting polides ... continued

Property and equipmenl
Property and equipment are stated at historical cost, less accumulated depreciation.

D epreciation is calculated on the straight-line method to write off the cost of each asset to their residual values over their estimated
usefullives, at the following annual rates:

Building 4%
Computer and equipment 20%
Furn iture and equipment 10% t020%
Furn iture and fittings 10% t020%
Mator vehicle 20%

Where the carrying amount of an asset is greater than its estimated recoverable am ou nt, it is written down immediately to its
recoverable amount, at each balance sheet date.

An asset's carrying amount is written down immediately to its recoverable am ou nt if the asset's carrying amount is greater than its
estimated recoverable amount. Gains and losses on disposais are determined by comparing proceeds with the ca rrying amount.
These are included in the statement of comprehensive income.

Repairs and maintenance are charged to the statement of comprehensive income du ring the financial period in which they are
incurred. The cost of major renovations is included in the carrying amount of the assets when it is probable that future economic
benefits in excess of the originally assessed standard of perlormance of the existing asset will flow to the Company. Major renovations
are depreciated over the remaining usefullife of the related asset.
Inveslmenl property
Investment pro pert y is measured initially at cost, including transaction costs. Investment property is held to earn rentai, rather than
for (a) use in the production or supply of goods or services or for administrative purposes or{b) sale in the ordinary course of business.

Investment property consists of building space held for long·term rentai yields and is not occupied by the Company for administrative
purposes. The Company applied the cost model in accounting for investment property.

Impairment of assets
Assets that have an indefinite usefullife are not subject to amortisation and are tested annually for impairment. Assets that are subject
to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable am ou nt is the higher of the asset's fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

Trade payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective method.

Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised
cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of
comprehensive income over the period of the borrowings using the effective interest method.

Borrowings are classified as cu rrent liabilities unless the Company has an unconditional right to defer settlement of the liability for at
least 12 monthsaher the balance sheet date.