You are correct in that the assets under construction are valued based on recoverable amounts, with general assumptions to obtain these amounts outlined on page 102 of the recent annual report. The company is assuming that pending projects will be completed in full as part of this calculation (which one would expect), with commencement of operations in "the second half of 2021 or 2022". The assets under construction figure was also questioned by the auditors and unable to be validated (see below). I believe
@EpicCopper is also correct, in that interest paid is capitalised in assets under construction (refer the cash-flow statement on page 66).
Note 19, Page 101: "The recoverable amounts of the assets under construction were determined based on value in use calculations using cash flow projections from financial budgets approved by the directors and extrapolated for the useful lives of the assets. As a result of the analysis, management did not identify an impairment for these CGUs."
Auditors report (bold is mine): "Note 19 of the financial report refers to the Group’s assets under construction at 30 June 2021 carried at US$1,388 million. The Directors have performed assessments to determine the recoverable amounts of each of its assets under construction and used the assessments to support the carrying amount of these assets in the statement of financial position as at 30 June 2021.
We were unable to obtain sufficient appropriate audit evidence to support certain assumptions used by the Directors in their impairment assessments at 30 June 2021 because we have not been able to obtain reliable external evidence that would enable us to form a view regarding the appropriateness of the assumptions used in respect of completing the construction of and subsequently operating each of these assets for the purposes of the respective value in use impairment tests that were performed. Consequently, we were unable to determine whether any adjustments to the amounts recorded in assets under construction are necessary."
