NOTES TO FINANCIAL STATEMENTS
30 June 2015
Annual Report 2015
Karin Technology Holdings Limited
63
2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
IMPAIRMENT OF NON-FINANCIAL ASSETS (continued)
An impairment loss is recognised only if the carrying amount of an asset exceeds its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. An impairment loss is charged to profit or loss in the period in which it arises, unless the asset is carried at
a revalued amount, in which case the impairment loss is accounted for in accordance with the relevant accounting
policy for that revalued asset.
An assessment is made at the end of each reporting period as to whether there is an indication that previously
recognised impairment losses may no longer exist or may have decreased. If such an indication exists, the recoverable
amount is estimated. A previously recognised impairment loss of an asset other than goodwill is reversed only if there
has been a change in the estimates used to determine the recoverable amount of that asset, but not to an amount
higher than the carrying amount that would have been determined (net of any depreciation/amortisation) had no
impairment loss been recognised for the asset in prior years. A reversal of such an impairment loss is credited to profit
or loss in the period in which it arises, unless the asset is carried at a revalued amount, in which case the reversal
of the impairment loss is accounted for in accordance with the relevant accounting policy for that revalued asset.
RELATED PARTIES
A party is considered to be related to the Group if:
(a)
the party is a person or a close member of that person’s family and that person:
(i)
has control or joint control over the Group;
(ii)
has significant influence over the Group; or
(iii)
is a member of the key management personnel of the Group;
or
(b)
the party is an entity where any of the following conditions applies:
(i)
the entity and the Group are members of the same group;
(ii)
one entity is an associate or joint venture of the other entity (or of a holding company, subsidiary
or fellow subsidiary of the other entity);
(iii)
the entity and the Group are joint ventures of the same third party;
(iv)
one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
(v)
the entity is a post-employment benefit plan for the benefit of employees of either the Group or
an entity related to the Group;
(vi)
the entity is controlled or jointly controlled by a person identified in (a); and
(vii)
a person identified in (a)(i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a holding company of the entity).
