Page 145 - Demo
P. 145
Notes to the Consolidated Financial Statements31 December 2024ESR Group Limited Annual Report 2024143STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTS2.4MATERIAL ACCOUNTING POLICIES (continued)Related parties (continued)(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 parent, 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);(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 parent of the entity); and(viii)the entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the parent of the Group.Property, plant and equipment and depreciationProperty, plant and equipment, other than construction in progress, are stated at cost less accumulated depreciation and any impairment losses. When an item of property, plant and equipment is classified as held for sale or when it is part of a disposal group classified as held for sale, it is not depreciated and is accounted for in accordance with IFRS 5, as further explained in the accounting policy for %u201cNon-current assets and disposal groups held for sale%u201d. The cost of an item of property, plant and equipment comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use.Expenditure incurred after items of property, plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalised in the carrying amount of the asset as a replacement. Where significant parts of property, plant and equipment are required to be replaced at intervals, the Group recognises such parts as individual assets with specific useful lives and depreciates them accordingly.