| Intangible assets |
| (i) | Intangible assets acquired separately |
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
| (ii) | Research and development |
Expenditure on research activities is recognized as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated:
| • | The technical feasibility of completing the intangible asset so that it will be available for use or sale; |
| • | The intention to complete the intangible asset and use or sell it; |
| • | The ability to use or sell the intangible asset; |
| • | How the intangible asset will generate probable future economic benefits; |
| • | The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and |
| • | The ability to measure reliably the expenditure attributable to the intangible asset during its development. |
The amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. When the development expenditure does not meet the criteria listed above, an internally-generated intangible asset cannot be recognized and the expenditure is recognized in income or loss in the period in which it is incurred.
Internally-generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses.
The estimated useful lives and amortization methods of the Company’s intangible assets with finite useful lives are as follows:
| Useful lives (years) | Amortization methods | |||
|
Usage rights for donated assets |
10 ~ 20 | Straight line | ||
|
Software |
4, 5 | Straight line | ||
|
Industrial rights |
5, 10 | Straight line | ||
|
Development expenses |
5 | Straight line | ||
|
Leasehold rights |
10 | Straight line | ||
|
Mining right |
— | Unit of production | ||
|
Others |
3 ~ 50 or Indefinite | Straight line |
| (iii) | Intangible assets acquired in a business combination |
Intangible assets that are acquired in a business combination are recognized separately from goodwill are initially recognized at their fair value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
| (iv) | Derecognition of intangible assets |
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized in income or loss when the asset is derecognized.