Accounting Policies
These financial statements have been prepared under the historical cost basis of accounting which is modified to accommodate the revaluation of certain property, plant and equipment.
Property, plant and equipment are stated in the accounts of cost or revalued amount less accumulated depreciation. Depreciation is based on the estimated useful life of the asset and is provided at the following rates:
Assets Rate
Land No depreciation
Buildings 2 % on cost
Plant and machinery 20% on cost
Fixtures, furniture and fittings 25% on cost
Motors vehicles 30% on reducing balance
Inventory is stated at the lower of cost and net realizable value. Cost represents the purchase price or production cost and other expenses incurred to get the inventory ready for sale. Net realizable value is the selling price of the inventory less other expenses that will be incurred to get he inventory ready for sale.