De-recognition:

An item of PPE is de-recognised at the time of its disposal or when it is assessed that no future economic benefit would
accrue from it. The gain/ loss arising out of such disposal/retirement is taken to Statement of Profit and Loss

B.6 INTANGIBLE ASSETS

An intangible asset is an identifiable non-monetary asset without physical substance.

An intangible asset with finite useful life that are acquired separately and where the useful life is 2years or more is
capitalized and carried at cost less accumulated amortization. Amortization is recognized on a straight line basis over
the useful life of the asset. The class of asset and the estimated useful life is as follows

 

 

 

 

Description of the asset Usemullltte and Basis or
amortization
Software - Acquired 5 Years
Technical Know - Acquired 2.5 years

 

 

 

Internally generated intangible assets
Expenditure on research activities is recognised 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
recognised 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 recognised 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. Where no internally generated
intangible asset can be recognised, development expenditure is recognised in Statement of Profit and Loss in the
period in which it is incurred. Subsequent to initial recognition, internally generated intangible assets are reported at
cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that
are acquired separately.

 

Useful life and basis of
amortization
Development Expenditure 3 years

Description of the asset

 

 

 

 

 

De-recognition

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or
disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net
disposal proceeds and the carrying amount of the asset, are recognised in Statement of Profit or Loss when the asset is
derecognised.

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