Page 314 - SAMRC AnnualReport 2025-26

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

1.30 Living and non-living resources (continued)

Measurement after recognition

Cost model
After recognition as an asset, a group of living resources are carried at its cost less any accumulated
depreciation and any accumulated impairment losses.

Depreciation
Living resources are depreciated and the depreciation charge for each period is recognised in surplus or
deficit unless it is included in the carrying amount of another asset, where appropriate.
The depreciable amount of a living resource is allocated on a systematic basis over its useful life.

The entity assesses at each reporting date whether there is any indication that the entity’s expectations
about the residual value and the useful life of a living resource have changed since the preceding
reporting date. If any such indication exists, the entity revises the expected useful life and/or residual
value accordingly. The change(s) is accounted for as a change in an accounting estimate.

In assessing whether there is any indication that the expected useful life of the living resource has
changed, the entity considers the following indications:

(a) (The use of the living resource has changed, because of the following:
• The entity has changed the manner in which The living resource is used.
• The entity has made a decision to dispose of the living resource in a future reporting period(s)
such that this decision changes the expected period over which the living resource will be used.
• Legislation, government policy or similar means have been amended or implemented during the
reporting period that have, or will, change the use of the living resource.
• The living resource was idle or retired from use during the reporting period.
(b) The living resource is approaching the end of its previously expected useful life.
(c) There is evidence that the condition of the living resource improved or declined based on assessments
undertaken during the reporting period.
(d) The living resource is assessed as being impaired.

In assessing whether there is any indication that the expected residual value of the living resource has
changed, the entity considers whether there has been any change in the expected timing of disposal of
the living resource, as well as any relevant indicators as noted above.

The depreciation method used reflects the pattern in which the future economic benefits or service
potential of the living resource is expected to be consumed by the entity.

The depreciation method applied to a living resource is reviewed at least at each reporting date and,
if there has been a significant change in the expected pattern of consumption of the future economic
benefits or service potential embodied in the living resource, the method is changed to reflect the
changed pattern. Such a change is accounted for as a change in an accounting estimate.

312 SA M R C A N N U A L R EP O R T 2 0 2 5 / 2 0 2 6