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comprehensive income is transferred to the carrying amount of the asset when the asset is recognized. If the forecast transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss. In other cases, the amount recognized in other comprehensive income is transferred to the income statement in the same period that the hedged item affects profit or loss. 

## Fair value hedges 

Fair value hedges are hedges of the fair value of recognized assets, liabilities or unrecognized firm commitments. Changes in the fair value of derivatives that are designated as fair value hedges are recorded in the income statement together with any changes in the fair value of the hedged item that are attributable to the hedged risk. 

## Separable embedded derivatives 

Changes in the fair value of separable embedded derivatives are recognized immediately in the income statement. 

## (d) Property, plant and equipment 

## (i) Recognition and measurement 

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. 

Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. 

Borrowing costs related to the acquisition, construction or production of qualifying assets is capitalized as part of the cost of the assets. This has been the Company’s policy since January 1, 2005. Under IFRS 1, the Company may elect a date prior to the date of transition to IFRS as its date for meeting this requirement. As such, any borrowing costs incurred that were related to the acquisition, construction or production of qualifying assets prior to January 1, 2005, have not been capitalized as part of the cost of those assets. 

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. 

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized within selling, general and administrative expenses in the income statement. 

The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in profit or loss as incurred. 

## (ii) Depreciation 

Depreciation is calculated based on the cost of the asset, or other amount substituted for cost, less its residual value. 

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. 

The estimated useful lives for the current and comparative periods are as follows: 

<img src='content_image/285277.jpg'>

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. 

