l
Profits and losses on sale of property, plant and equipment are calculated on the basis of their carrying values and are
accounted for in operating profit.
l With the replacement of a part of an item of property, plant and equipment, the replaced part is derecognised. The
replacement part shall be recognised according to the recognition criteria as an individual asset with specific useful life and
depreciation.
The carrying values of property, plant and equipment are considered for impairment when the events or changes in
circumstances indicate that the carrying values are no longer recoverable from its future use or realisation of the assets.
Depreciation is calculated on a fixed percentage basis over the expected useful life at the following rates:
%
Land -
Silos 2,85
Buildings and improvements 2,5
Plant and equipment 7,5-33,3
Vehicles 20
Heavy vehicles *
* Heavy vehicles are depreciated at 40%, 30%, 20% and 10% per annum over a four year period.
Depreciation begins when an asset is available for use, even if it is not yet brought into use. Each part of an item of property,
plant and equipment with a cost which is significant in relation to the total cost of the item, is depreciated separately. Land
is not depreciated as it is deemed to have an unlimited life.
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 an invention of laser-based volume measuring devices which the
seller has developed on behalf of, and with the assistance of Senwes.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 90