Page 85 - Annual Report 2021

5.11 INVENTORIES

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is
determined on the weighted average cost method and comprises the purchase price and incidentals incurred in
bringing the inventories to their present location and condition.

At each reporting date, the Group assesses whether any inventories are impaired by comparing the carrying
amount of each item of inventory with its selling price less costs to complete and sell. If an item of inventory is
impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is
recognised in profit or loss immediately.

5.12 GOVERNMENT GRANTS

Government grants are recognised initially as deferred income when there is reasonable assurance that they will
be received and the Group will comply with the conditions associated with the grant and are then recognised in the
statements of comprehensive income as other income on a systematic basis over the useful life of the asset.

Grants that compensate the Group for expenses incurred are recognised in the statements of comprehensive
income as other income on a systematic basis in the same periods in which the expenses are recognised.

5.13 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, and short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value with original maturity periods of three months or less.

5.14 EMPLOYEE BENEFITS

(a) short-term Benefits
Wages, salaries, paid annual leave and bonuses are measured on an undiscounted basis and are recognised
in profit or loss in the period in which the associated services are rendered by employees of the Group.

(b) Defined contribution Plans
The Group’s contributions to defined contribution plans are recognised in profit or loss in the period to which
they relate. Once the contributions have been paid, the Group has no further liability in respect of the defined
contribution plans.

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