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2.
Significant accounting policies (continued)
2.7 Equipment
(a)
Measurement
Equipment is initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated
impairment losses.
The cost of an item of equipment includes its purchase price and any cost that is directly attributable to bringing the
asset to the location and condition necessary for it to be capable of operating in the manner intended.
(b)
Depreciation
Depreciation on computers, furniture and equipment is calculated using the straight line method to allocate the
depreciable amounts over the estimated useful lives as follows:
Useful Lives
Computers, furniture and equipment
3 to 10 years
The residual values, estimated useful lives and depreciation method of equipment are reviewed, and adjusted as
appropriate, at each balance sheet date. The effects of any revision are recognised in profit or loss when the changes arise.
(c)
Subsequent expenditure
Subsequent expenditure relating to equipment that has already been recognised is added to the carrying amount
of the asset 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 repair and maintenance expenditure are recognised in
profit or loss when incurred.
(d)
Disposal
On disposal of an item of equipment, the difference between the disposal proceeds and its carrying amount is
recognised in profit or loss within “Other property operating expenses”.
2.8 Investment Properties Under Construction
All investment properties under construction where fair values are reliably determinable are measured at fair value. The
difference between the fair value and the carrying amount is recognised in profit or loss. Investment properties under
construction for which the fair value cannot be reliably measured at present, but for which in future the fair value would be
reliably determinable is accounted for at cost.
