AGS Transact Technologies Limited

Annexure V - Basis of preparation and Significant Accounting Policies

Notes to the Revised Restated Consolidated Financial Information

‘ Foreign subsidiaries are depreciating assets on SLM basis. The useful life for ATM machines, POS machines,
furniture and fixtures, office equipment; electrical installation and air conditioner and computers have been
estimated to be 5 years, 3-5 years, 2 years, 2 to 3 years and 1 year respectively.

Leasehold improvements are amortised over the primary period of lease i.e. lease period which ranges from 3 to 10
years as per the agreement or the life of respective assets, whichever is lower.

Depreciation method, useful lives and residual values are reviewed at each financial year end and adjusted if
appropriate.

Asset held for sale

Assets are classified as held for sale if their carrying amount will be recovered principally through sale transaction
rather than through continuing use and a sale is considered highly probable. They are measured at lower of their
carrying amount and fair value less cost to sell.

Intangible assets

(i) Recognition and measurement

Intangible assets acquired separately are measured on initial recognition at cost.

Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure
is reflected in the Revised Restated Consolidated Statement of Profit and Loss in the year in which the expenditure

is incurred.

Intangibles which are not ready for intended use as on the reporting date are disclosed as “Intangible under
development”.

(ii) Subsequent expenditure

After initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated
impairment loss, if any.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates.

(iii) Service concession arrangements

The Group recognises an intangible asset arising from a service concession arrangement to the extent it has a right to
charge for use of the concession infrastructure. The fair value, at the time of initial recognition of such an intangible
asset received as consideration for providing construction or upgrade services in a service concession arrangement,
is regarded to be its cost. Subsequent to initial recognition, the intangible asset is measured at cost, less any

accumulated amortisation and accumulated impairment losses, if any.

(iv) Amortisation of intangible assets

Intangible assets are amortised on a straight line basis over the estimated useful economic life. The estimated useful
lives are as follows:

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