Cellmid 2018 Annual Report
44
NOTES TO THE
FINANCIAL STATEMENTS
CONTINUED
11. INVENTORIES
Accounting Policy
Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct
materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of
normal operating capacity. Costs are assigned on the basis of standard costing and are reviewed regularly. Costs of purchased
inventory are determined after deducting rebates and realisable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and the estimated cost necessary to make the sale.
13. PLANT AND EQUIPMENT
Accounting Policy
Plant and equipment is measured at historical cost less accumulated depreciation/amortisation and any accumulated impairment.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. All other repairs and maintenance are charged to the statement of profit or loss during the financial period in which they
are incurred.
Depreciation / Amortisation
Depreciation is calculated on a straight line basis over the asset’s useful life to the Group commencing from the time the asset
is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or
the estimated useful lives of the improvements. Amortisation of the cost of the Midkine protein asset is calculated on a ug (or
mg) basis as the protein is consumed through research activities and/or production of MK Elisa kits.
12. OTHER ASSETS
2018 2017
(Restated)
$ $
Midkine and MK ELISA 16,957 15,492
Consumer Health-finished goods 937,344 798,991
Consumer Health-raw materials 226,430 264,840
1,180,731 1,079,323
2018 2017
$ $
Prepayments 339,223 110,054