Property and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items and may also include finance costs related to the acquisition of qualifying assets.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with these costs will flow to PagSeguro Group and they can be measured reliably. The carrying amount of replaced items or parts is derecognized. All other repairs and maintenance expenses are charged to the statement of income during the year in which they are incurred.
The assets' residual values and useful lives are reviewed at the end of each reporting period, and adjusted on a prospective basis if appropriate. Depreciation is calculated under the straight-line method, based on the estimated useful lives as shown below (in years):
|
|
| December 31, | ||
|
|
| 2017 |
| 2016 |
| Data processing equipment |
| 2,5 to 5 |
| 2,5 to 5 |
| Furniture and fittings |
| 10 |
| 10 |
| Facilities |
| 10 |
| 10 |
| Leasehold improvements |
| 10 |
| 10 |
| Machinery and equipment |
| 5 to 10 |
| 10 |
| Vehicles |
| 5 |
| - |
An asset's carrying amount is immediately written down to its recoverable amount when the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts, and are recognized within “Other (expenses) income, net” in the statement of income.