| 2.21. | Intangible Assets |
Intangible items are recognized as intangible assets when they meet the following criteria:
| • | the item is identifiable and separable; |
| • | the Company has the capacity to control future economic benefits from the item; and |
| • | the item will generate future economic benefits. |
Intangible assets consist mainly of trademark, software purchased and software internally developed.
Initial Recognition
Intangible assets acquired separately by the Company are measured at cost, which includes capitalized borrowing costs.
Amortization
Subsequent to initial recognition of the intangible assets, the intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization of the asset begins when development is complete and the asset is available for use. Indefinite life intangibles are not amortized, but are tested for impairment at each year-end or whenever there is an indication that the carrying amount may not be recovered. The estimated useful lives of assets are as follows:
|
Asset Class |
Useful Life (years) |
|
|
Purchased software |
5 | |
|
Internally developed software |
5 | |
|
Trademark |
Indefinite |
Amortization methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate and any changes are accounted for as changes in accounting estimates. There were no such changes for any of the periods presented.
Derecognition
An intangible asset is derecognized on disposal when no future economic benefits are expected from its use or disposal. Gain or loss arising from derecognition of an intangible asset is determined as the difference between the net sale proceeds, if any, and the carrying amount of the intangible asset. When an intangible asset is derecognized, it is recorded as other operating expenses in the consolidated statements of profit or loss.