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Whitehaven Coal Limited : Annual Report 2013
122 Whitehaven Coal Limited Annual Report 2013 Notes to the Financial Statements 30 June 2013 n) Impairment (i) Financial assets A nancial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A nancial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative e ect on the estimated future cash ows of that asset. An impairment loss in respect of a nancial asset measured at amortised cost is calculated as the di erence between its carrying amount, and the present value of the estimated future cash ows discounted at the original e ective interest rate. Individually signi cant nancial assets are tested for impairment on an individual basis. The remaining nancial assets are assessed collectively in groups that share similar credit risk characteristics. All impairment losses are recognised in pro t or loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For nancial assets measured at amortised cost, the reversal is recognised in pro t or loss. (ii) Non- nancial assets The carrying amounts of the consolidated entity's non- nancial assets, other than inventories and deferred tax assets, are reviewed at each balance date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For intangible assets that have inde nite lives or that are not yet available for use, recoverable amount is estimated at each reporting date. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash ows are discounted to their present value using a pre-tax discount rate that re ects current market assessments of the time value of money and the risks speci c to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash in ows from continuing use that are largely independent of the cash in ows of other assets or groups of assets (the 'cash-generating unit'). An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the statement of comprehensive income, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised through pro t or loss. Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the assets in the unit (group of units) on a pro-rata basis. o) Trade and other payables Trade and other payables are carried at amortised cost. Due to their short-term nature they are not discounted. They represent liabilities for goods and services provided to the consolidated entity prior to the end of the nancial year that are unpaid and arise when the consolidated entity becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. p) Interest bearing loans and borrowings All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the e ective interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings. q) Employee bene ts (i) Wages, salaries, annual leave and sick leave Liabilities for wages, salaries, annual leave and sick leave are recognised in respect of employees' services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled i.e. at undiscounted amounts based on remuneration wage and salary rates including related on-costs, such as workers compensation insurance and payroll tax. Non-accumulating non-monetary bene ts, such as medical care, housing, cars 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Annual Report 2012