National Consumer Tribunal Annual Report 2011/12 National Consumer Tribunal 2011-12 | Page 87

ACCOUNTING POLICIES
for the year ended 31 March 2011
1.12 Property, plant and equipment (continued)
Depreciation is calculated on the straight line method to write off the cost of each asset
over its estimated useful life as follows:
Property, plant and equipment
Furniture and fittings
Equipment
Computer equipment
Books
Signage
Leasehold improvements
Leased equipment
Average useful life
3-6 years
3-4 years
3-5 years
5 years
5 years
Period of lease
Period of lease
The depreciation charge for each period is recognised in profit or loss.
1.13 Intangible assets
An intangible asset is recognised when:
- -
- -
its is probable that the expected future economic benefits that are attributable to the
asset will flow to the entity; and
the cost of the asset can be measured reliably.
Intangible assets are initially recognised at cost. Expenditure on research is recognised
as an expense when it is incurred. An intangible asset from development is recognised
when:
- -
- -
- -
- -
- -
It is technically feasible to complete the asset so that it will be available for use or
sale;
There is an intention to use or sell it;
There is an ability to use or sell it;
It will generate probable future economic benefits;
The expenditure during the development phase can be measured reliably.
Intangible assets are carried at cost less accumulated amortisation and impairment
losses. The amortisation period and method are reviewed every year-end.
Amortisation is provided to write down the intangible assets on a straight line basis as
follows:
Computer software
Software under development
3-4 years
Not yet in use
Annual Report 2011
national consumer tribunal | page 85