账目附注NotestotheFinancialStatements-康师傅控股有限公司.PDFVIP

Notes to the Financial Statements For the year ended 31 December 2006 6. 6. Critical Accounting Estimates and Judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Apart from information disclosed elsewhere in these financial statements, the following summarise estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within next financial year. Useful lives and impairment of property, plant and equipment The directors review the residual value, useful lives and depreciation method of property, plant and equipment on an annual basis, through careful consideration with regards to expected usage, wear- and-tear and potential technical obsolescence to usage of the assets. In determining whether an asset is impaired or the event previously causing the impairment no longer exists, the directors has to (1) exercise judgement in the area of asset impairment, particularly in