Senwes Annual Financial Statements 2022 | Page 78

SENWES ANNUAL FINANCIAL STATEMENTS 2022

Intellectual property The group acquired intellectual property ( IP ) relating to an invention of laser-based volume measuring devices which the seller has developed on behalf of , and with the assistance of Senwes .

Brandnames , patents , trademarks and other rights The group acquired and recognised brandnames , patents , trademarks and other rights in the business combinations of the Suidwes Group .

Customer relationships The group acquired and recognised customer relationships in the business combinations of the Hinterland and Suidwes Groups .

Supplier agreements The group acquired and recognised supplier agreements in the business combination of the Suidwes Group . The agreements contain an evergreen clause which results in an indefinite useful life as indicated below .

Accreditation The group recognised a SANAS accreditation in the business combinations of the Suidwes Group .

A summary of the policies applied to the group ’ s intangible assets is , as follows :

Intellectual property

Brandnames , patents , trademarks and other rights Useful life Finite ( 10 years ) Amortisation method used

Amortised on a straight-line basis over the useful life Internally generated or acquired Acquired

Customer relationships Useful life Finite ( 10 years ) Amortisation method used

Amortised on a straight-line basis over the useful life Internally generated or acquired Acquired

Supplier agreements Useful life Amortisation method used Internally generated or acquired

Indefinite No amortisation Acquired

Accreditation Useful life Finite ( 5 years ) Amortisation method used

Amortised on a straight-line basis over the useful life Internally generated or acquired 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 statement of comprehensive income in the period of derecognition .

Transfers are made to /( from ) investment property only when there is a change in use . If owner-occupied property becomes an investment property , the company accounts for it in accordance with property , plant and equipment up to the date of change .

Under certain circumstances , it is difficult to distinguish between investment property and property occupied by the owner . In such circumstances , the criteria are to distinguish based on the existing occupation and purpose of the property .

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