Notes To The Financial Statements (Continued) 30 June 2015 Property and equipment Property and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost of assets is the cost of acquiring and installing a new modern substitute asset having the same productive capacity as that of existing, depreciated according to age, obsolescence, use and condition. This value is only applied to assets which are part of an operating concern, and assumes adequate profitability. It does not necessarily represent the open market value of the assets. Provision is made for the depreciation of equipment on a straight line basis to write down assets to estimated residual values over their expected useful lives as follows: Depreciation is calculated on a straight line basis at rates calculated to write off the cost of these assets over their estimated useful lives which are as follows: Buildings - 40 years Library Books - 20 years Furniture and fittings - 10 years Office equipment - 10 years Computers - 10 years Motor vehicles - 5 years Property and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of asset (calculated as the difference between the net proceeds and the carrying value of the asset) is included in the income statement, in the year the asset is derecognised. Impairment of non-financial assets (property and equipment) The organisation assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, the organisation estimates the recoverable amount of the asset. If there is any such indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined. The recoverable amount of an asset is the higher of its fair value less costs to sell and value in use. If the recoverable amount of an asset is less than the carrying amount, the asset is reduced to its recoverable amount. That reduction is an impairment loss. This is recognised through the statement of comprehensive income. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years.   46 Legal Resources Foundation Annual Report 2015