Page 169 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
(e) Biological assets Bearer biological assets Bearer biological assets comprising of sugar cane ratoons and and plantation costs are are capitalised and and amortised over the period during which the the Group Group expects to benefit from the the asset usually nine years The Group Group account for bearer plants in the same way as property plant and equipment Consumable biological assets Consumable biological assets represent standing cane vegetables and and and plants and and and are stated at at fair value less costs to sell The fair value is is measured as as as the the the the expected net cash flows from the the the the sale of the the the the cane and plants discounted at the the the the relevant market determined pre-tax rate The changes in in fair value less cost to sell of the consumable biological assets is is recognised in the statement of o profit or loss (f) Intangible assets Intangible assets assets acquired acquired separately are measured on on initial recognition at at cost cost The cost cost of intangible assets assets acquired acquired in in in a a a a a a a a a a a a business combination is is their fair value as as at at at the the date of acquisition Following initial recognition intangible assets are carried at at at at at cost less any any accumulated accumulated amortisation and any any accumulated accumulated impairment losses Internally generated intangible assets excluding capitalised capitalised development costs are not capitalised capitalised and the related expenditure is is is reflected in in profit or loss in in in the the year in in in which the the expenditure is incurred The useful lives of intangible assets are assessed to be either finite finite or indefinite Intangible assets with finite lives are amortised over the the useful economic life and assessed for impairment whenever there is is is an an an an indication that the the intangible asset may be impaired The amortisation amortisation period and the the amortisation amortisation method for an an an an intangible asset with a a a a a a a a a finite useful life are reviewed at at least at at the the end of each reporting period Changes in fin in in the the expected useful life or the the expected pattern of of consumption of of future economic benefits embodied in the the asset are considered to modify the amortisation period or or method as as appropriate and are treated as as changes in in accounting estimates The amortisation expense expense on on on intangible assets with finite lives is is is is recognised in fin in in profit or or or loss in fin in in the expense expense category consistent with the the function of the the intangible asset Intangible assets such as as goodwill with indefinite useful lives are are not amortised but are are tested for impairment annually either individually or at at the the cash-generating unit level The assessment of indefinite life is reviewed annually to determine whether the the the indefinite indefinite life life continues to to be supportable If not the the the change in fin in in in fin fin useful life life from indefinite indefinite to to finite finite finite is made on on a a prospective basis Gains or losses arising from derecognition of an an intangible asset are measured as as as the the difference between the the net disposal proceeds and and the the the carrying amount of o the the the asset asset and and are recognised recognised in in profit or loss when the the the asset asset is is is derecognised Intangible assets include computer software which is is amortised using the straight line method over 6 years (g) Land conversion rights
The Land Conversion Rights (“LCRs”) granted under the the Sugar Industry Efficiency Act 2001 are capitalised up up to the the Group’s entitlement of exemption from the the land conversion tax The LCRs are tested for impairment using the the discounted cash flow method (the “DCF”) Changes in in the the the carrying amount of o the the the LCRs is charged to profit or loss UBP INTEGRATED REPORT 2020
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FINANCIAL CAPITAL CORPORATE MANAGEMENT STATEMENTS
REPORTS GOVERNANCE APPROACH
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