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Notes to the Financial Statements
Washington H. Soul Pattinson and Company Limited
Annual Report 2016
108
2016
2015
Recoverable
amount/
(liability)
Impairment
loss on oil
producing
assets
Recoverable
amount/
(liability)
Impairment
loss on
goodwill and
oil producing
assets
$’000
$’000
$’000
$’000
Cooper Basin PL98
6,901
8,342
12,869
51,410
Cooper Basin PL214
1,383
5,673
6,719
1,545
Cooper Basin PL24-26, 35, 36,
62, 76-79, 82, 87, 105, 107,
109, 133, 149, 175, 181, 182,
189 and 302
(1,097)
1,014
(277)
1,613
Cooper Basin PL15
–
–
–
1,045
7,187
15,029
19,311
55,613*
* Includes $4.157 million impairment of associated goodwill. Refer to note 27.
Determination of recoverable value – copper processing plant, equipment and capitalised mine
development costs
The assessment of recoverable value includes key estimates in relation to quantities of economically recoverable
reserves and resources, resource grades and mine plans. These are based upon interpretations of geological
models and other matters. It also requires key assumptions to be made regarding a number of factors including
short and long-term exchange rates, short and long-term copper prices, future capital expenditure and working
capital. Estimates are also required to be made in relation to the economic life of the plant and its residual value.
Changes in these estimates and applying different assumptions may impact significantly the assessment of the
recoverable value of the plant, equipment and capitalised mine development costs, as well as the amount of
depreciation and amortisation charged to the income statement. The directors are satisfied that the estimates
and assumptions made are based on observable and other supportable inputs and therefore that the impaired
carrying value of the copper processing plant, equipment and capitalised mine development costs at 31 July 2016
is appropriate.
Fixed Assets
25
NOTE 25
PROPERTY, PLANT AND EQUIPMENT (continued)