AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
The useful life method of depreciation and residual value of property , plant and equipment are reviewed at each reporting date and adjusted prospectively , if appropriate . The evaluations in respect of the useful life and residual value of assets can only be determined accurately when items of property , plant and equipment approach the end of their lives . Useful life and residual value evaluations can result in an increased or decreased depreciation expense . If the residual value of an asset equals its carrying amount , the asset ’ s depreciation charge is zero , unless and until its residual value subsequently decreases to an amount below the asset ’ s carrying amount .
2.4 Intangible assets Intangible assets acquired separately are measured on initial recognition at cost . The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition . Following initial recognition , intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses . Internally generated intangibles , excluding capitalised development costs , are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred .
The useful lives of intangible assets are assessed as either finite or indefinite .
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired . The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period . Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method , as appropriate , and are treated as changes in accounting estimates . The amortisation expense on intangible assets with finite lives is recognised in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets .
An intangible asset is derecognised upon disposal ( i . e ., at the date the recipient obtains control ) or when no future economic benefits are expected from its use or disposal . Any gain or loss arising upon derecognition of the asset ( calculated as the difference between the net disposal proceeds and the carrying amount of the asset ) is included in the statement of profit or loss .
Intellectual property The group acquired intellectual property ( IP ) relating to a laser based volume measuring devices which the seller has developed on behalf of , and with the assistance of Senwes .
A summary of the policies applied to the Group ’ s intangible assets is , as follows :
Useful live Amortisation method used
Internally generated or acquired
Finite ( 10 years ) Amortised on a straight-line basis over the period of the patent Acquired
2.5 Investment property Investment property is land and buildings held to earn rentals or for capital appreciation or both . Investment property is recognised as an asset when and only when it is probable that the future economic benefit associated with the investment property will be the business and the investment property cost can be measured reliably .
Investment properties are initially recognised at cost , including transaction costs . Depreciation is calculated using the straight-line method to reduce their cost to their residual values over their estimated useful life . Land is not depreciated . Investment properties depreciation methods , residual values and useful life are reviewed , and adjusted if appropriate , at the end of each reporting period .
Investment properties are derecognised either when they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal . The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the statements of comprehensive income in the period of derecognition .
Agribel Holdings Limited Reg nr : 1996 / 017629 / 06 AGRIBEL ANNUAL FINANCIAL REVIEW 2021
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