Impairment Impairment 64  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (R) NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE AND DISCONTINUED OPERATIONS (Q) MINE PROPERTIES AND DEVELOPMENT Expenditure on the acquisition and development of mine properties within an area of interest are carried forward  at cost separately for each area of interest. Accumulated expenditure is amortised over the life of the area of  interest to which such costs relate on a production output basis. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry  forward costs in relation to that area of interest. The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment at the cash  generating unit level whenever facts and circumstances suggest that the carrying amount of the asset may  exceed its recoverable amount. An impairment exists when the carrying amount of an asset or cash-generating unit exceeds its estimated  recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. Any  impairment losses are recognised in the statement of comprehensive income. The carrying value of capitalised mine properties and development expenditure is assessed for impairment  whenever facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable  amount. The recoverable amount of capitalised mine properties and development expenditure is the higher of fair value  less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to  their present value using a pre-tax discount rate that reflects current market assessments of the time value of  money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, recoverable amount is determined for the  cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated to be close to  its fair value. An impairment exists when the carrying amount of an asset or cash-generating unit exceeds its estimated  recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. Any  impairment losses are recognised in the statement of comprehensive income. Non-current assets and disposal groups are classified as held for sale and measured at the lower of their carrying  amount and fair value less costs to sell if their carrying amount will be recovered principally through a sale  transaction. They are not depreciated or amortised. For an asset or disposal group to be classified as held for sale  it must be available for immediate sale in its present condition and its sale must be highly probable. An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair  value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an  asset (or disposal group), but is not in excess of any cumulative impairment loss previously recognised. A gain or  loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised  as the date of derecognition. A discontinued operation is a component of the entity that has been disposed of or is classified as held for  sale and that represents a separate major line of business or geographical area of operations, is part of a  single coordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired  exclusively with a view to resale. The results of discontinued operations are presented separately on the face of  the statement of comprehensive income and the assets and liabilities are presented separately on the face of the  statement of financial position.