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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
108
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
1.
SIGNIFICANT ACCOUNTING POLICIES continued
Property, plant and equipment continued
Depreciation is calculated on the straight-line basis to write off the cost of the assets to their residual
values over their estimated useful lives as follows:
Motor vehicles
20% – 25%
Furniture and fittings
16.67% – 25%
Office equipment
25%
Computer equipment
25% – 33.3%
Terminals and vending machines
16.67%
Media equipment
33.33%
Plant and machinery
20%
Buildings
8.33%
Major leasehold improvements are amortised over the shorter of their respective lease periods and
estimated useful lives.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets
are capitalised as part of the cost of those assets. No such qualifying assets exist at year-end.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at year-end.
Where the assets’ residual value is higher than the carrying value, no depreciation is provided.
Gains and losses on disposal of property, plant and equipment are determined as the difference
between the carrying amount and the fair value of the sale proceeds, and are included in
operating profit.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written
down immediately to its recoverable amount.
Intangible assets
(a)
Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring to use the specific software. Computer software has a finite useful life and is subsequently
carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line
method to allocate the cost of the computer software over its estimated useful life (three to 10 years).
Costs associated with the maintenance of existing computer software programs are expensed as
incurred.
(b)
Trademarks
Trademarks are shown at historical cost. Trademarks have a finite useful life and are subsequently
carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line
method to allocate the cost of trademarks over their estimated useful lives (10 years).
Trademarks are initially shown at fair value as determined in accordance with IFRS 3 –
Business
Combinations,
and are subsequently carried at the initially determined fair value less accumulated
amortisation and impairment losses.