41 ANNUAL REPORT 2014 CLOSE FILE X 1 CORPORATE INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (continued) (c) Summary of significant accounting policies  (continued) De-recognition and disposal Tax effect accounting by members of the tax consolidated group Sharing and Tax Funding Agreement (“TSA”) in order to allocate income tax  expense to the relevant wholly-owned entities predominantly on a  stand-alone basis. In addition, the TSA provides for the allocation of income  tax liabilities between the entities should the head entity default on its  income tax payment obligations to the Australian Taxation Office. An impairment exists when the carrying value 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. An item of property, plant and equipment is de-recognised upon disposal  or when no further future economic benefits are expected from its use  or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the  difference between the net disposal proceeds and the carrying amount of  the asset) is included in profit or loss in the year the asset is de-recognised. Under the terms of the TSA, wholly owned entities compensate the head  entity for any current tax payable assumed and are compensated for any  current tax receivable, and are also compensated for deferred tax assets  relating to unused tax losses or unused tax credits that are recognised on  transfer to the parent entity under tax consolidation legislation. The funding  amounts are determined at the end of each six month reporting period by  reference to the amounts recognised in the wholly-owned entities financial  statements determined predominantly on a stand alone basis. Amounts  receivable or payable under the TSA are included with other amounts  receivable or payable between entities in the Group. (xviii) Investments and other financial assets (xvi) Other taxes (xv) Income tax  (continued) (a) Financial assets at fair value through profit or loss (b) Held-to-maturity investments (xvii) Property, plant and equipment – when the GST incurred on a purchase of goods and services is not  recoverable from the taxation authority, in which case the GST is  recognised as part of the cost of acquisition of the asset or as part of the  expense item as applicable; and – receivables and payables, which are stated with the amount of GST  included. All regular way purchases and sales of financial assets are recognised on  the trade date i.e. the date that the Group commits to purchase the asset.  Regular way purchases or sales are purchases or sales of financial assets  under contracts that require delivery of the assets within the period  established generally by regulation or convention in the marketplace. Revenues, expenses and assets are recognised net of the amount of GST  except: Financial assets in the scope of AASB 139:  Financial Instruments: Recognition  and Measurement  are classified as either financial assets at fair value  through profit or loss, loans and receivables, held-to-maturity investments,  or available-for-sale investments, as appropriate. When financial assets  are recognised initially, they are measured at fair value, plus, in the case of  investments not at fair value through profit or loss, directly attributable  transactions costs. The Group determines the classification of its financial  assets after initial recognition and, when allowed and appropriate,  re-evaluates this designation at each financial year-end. The net amount of GST recoverable from, or payable to, the taxation  authority is included as part of receivables or payables in the statement of  financial position. Cash flows are included in the statement of cash flows on a gross basis and  the GST components of cash flows arising from investing and financing  activities, which are recoverable from, or payable to, the taxation authority  are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST  recoverable from, or payable to, the taxation authority. In accordance with AASB 7:  Financial Instruments: Disclosures , financial  assets classified as held for trading are included in the category ‘financial  assets at fair value through profit or loss’. Financial assets are classified as  held for trading if they are acquired for the purpose of selling in the near  term. Derivatives are also classified as held for trading unless they are  designated as effective hedging instruments. Gains or losses on financial  assets held for trading are recognised in profit or loss. It should be noted  that even though these assets are classified as held for trading (in  accordance with AASB 139 terminology), the Group is not involved in  speculative activities and only uses derivatives for risk management  purposes. Non-derivative financial assets with fixed or determinable payments and  fixed maturity are classified as held-to-maturity when the Group has the  positive intention and ability to hold to maturity. Investments intended to be  held for an undefined period are not included in this classification.  Investments that are intended to be held-to-maturity, such as bonds, are  subsequently measured at amortised cost. This cost is computed as the  amount initially recognised minus principal repayments, plus or minus the  cumulative amortisation using the effective interest method of any  difference between the initially recognised amount and the maturity  amount. This calculation includes all fees and points paid or received  between parties to the contract that are an integral part of the effective  interest rate, transaction costs and all other premiums and discounts. For  investments carried at amortised cost, gains and losses are recognised in  profit or loss when the investments are de-recognised or impaired, as well  as through the amortisation process. The Group does not currently have  held-to-maturity investments. Property, plant and equipment is stated at cost less accumulated  depreciation and any accumulated impairment in value. Such cost includes  the cost of replacing parts that are eligible for capitalisation when the cost  of replacing the parts is incurred. Similarly, when each major inspection is  performed, its cost is recognised in the carrying amount of the plant and  equipment as a replacement only if it is eligible for capitalisation. Depreciation is calculated on a straight-line basis over the estimated useful  life of the assets as follows: Pooled animals are classified as part of property, plant and equipment and  are not depreciated. The assets’ residual values, useful lives and amortisation methods are  reviewed, and adjusted if appropriate, at each financial year end, and when  acquired as part of a business combination. The carrying values of property, plant and equipment are reviewed for  impairment at each reporting date, with recoverable amount being  estimated when events or changes in circumstances indicate that the  carrying value may be impaired. Loans and receivables are non-derivative financial assets with fixed or  determinable payments that are not quoted in an active market. Such  assets are carried at amortised cost using the effective interest rate  method. Gains and losses are recognised in profit or loss when the loans  and receivables are de-recognised or impaired. Available-for-sale investments are those derivative financial assets that  are designated as available-for-sale or not classified as any of the three  preceding categories. After initial recognition, available-for-sale  investments are either carried at cost less any accumulated impairment  losses, or are measured at fair value with gains or losses being recognised  in other comprehensive income until the investments are de-recognised or  until the investments are determined to be impaired, at which time the  cumulative gain or loss previously reported in other comprehensive income  is recognised in profit or loss. The recoverable amount of property, plant and equipment is the higher of  fair value less costs of disposal 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. (d) Available-for-sale investments (c) Loans and receivables Impairment – Buildings and improvements are depreciated over the lesser of any  relevant lease term and 40 years, using the straight line method. – Plant, equipment and vehicles are depreciated over periods of between  three and 25 years using the straight line or reducing balance method.