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NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2018
Cost model The estimated useful lives of the assets by equal annual
The Company applies the cost model to all property, instalments are as follows.
plant and equipment except freehold land and buildings;
and is recorded at cost of purchase together with any Building 2.5%
incidental expenses thereon less any accumulated
depreciation and accumulated impairment losses. Leasehold Improvements 10%
Revaluation Model
The Company revalues its land and buildings which are Computer and Equipment 25%
measured at its fair value at the date of revaluation
less any subsequent accumulated depreciation and Furniture and Fittings 7.5%
accumulated impairment losses. Revaluations are made
with sufficient regularity to ensure that the carrying Motor Vehicles 15%
amount does not differ materially from that which would
be determined using fair value at the reporting date. Office Equipment (included under Furniture and Fittings ) 15%
On revaluation of lands and buildings, any increase in
the revaluation amount is credited to the revaluation The asset’s residual value, useful life and method of
reserve in shareholder’s equity unless it off sets a depreciation are reviewed at each statement of financial
previous decrease in value of the same asset that was position date and adjusted prospectively, as changes in
recognized in the statement of profit or loss. A decrease accounting estimates.
in value is recognized in the statement of profit or loss
where it exceeds the increase previously recognized 3.11 Intangible Assets
in the revaluation reserve. Upon disposal, any related Software
revaluation reserve is transferred from the revaluation
reserve to retained earnings and is not taken into Software acquired by the Company is stated at cost less
account in arriving at the gain or loss on disposal. accumulated amortization and accumulated impairment
Derecognition losses.
Items of property, plant and equipment are derecognized
upon disposal or when no future economic benefits Expenditure on internally developed software is
are expected from its use. Any gain or losses rising on recognized as an asset when the Company is able to
de-recognition of the asset is included in the Income demonstrate its intention and ability to complete the
statement the year the asset is derecognized. development and use the software in a manner that
Subsequent Costs will generate future economic benefits, and can reliably
The cost of replacing a component of an item of measure the costs to complete the development. The
property, plant or equipment is recognized in the capitalized costs of internally developed software include
carrying amount of the item if it is probable that the all costs directly attributable to developing the software
future economic benefits embodied within the part and capitalized borrowing costs, and are amortized over
will flow to the Company and its cost can be measured its useful life. Internally developed software is stated
reliably. The carrying amount of the replaced part is at capitalized cost less accumulated amortization and
derecognized. The costs of the day-to-day servicing of impairment.
property, plant and equipment are recognized in profit
or loss as incurred. Subsequent expenditure on software assets is capitalized
Depreciation only when it increases the future economic benefits
Depreciation is recognized in income statement on a embodied in the specific asset to which it relates. All
straight-line basis over the estimated useful lives of other expenditure is expensed as incurred.
each part of an item of property and equipment since Amortization is recognized in profit or loss on a straight-
this most closely reflects the expected pattern of line basis over the estimated useful life of the software,
consumption of the future economic benefits embodied from the date that it is available for use since this most
in the asset. closely reflects the expected pattern of consumption of
Leased assets under finance leases are depreciated the future economic benefits embodied in the asset.
over the shorter of the lease term and their useful lives. Estimated Useful Life of Intangible Assets
Land is not depreciated. The depreciation charges are
determined separately for each significant part of an Intangible Amortization Period
item of Property, Plant and Equipment and commence Computer Software Over 10 years from the
to depreciate when it is available for use. Depreciation date of Available to use
of an asset ceases at the earlier of the date that the
asset is classified as held for sale or the date that the Amortization methods, useful lives and residual values
asset is derecognized. are reviewed at each financial year-end and adjusted if
appropriate.
Annual Report 2018 Derecognition
Intangible assets are derecognised on disposal or when
no future economic benefits are expected from their
use. Any gain or loss arising on derecognition of the
asset, (Calculated as the difference between the net
disposal proceeds and the carrying amount of the asset)
is recognised in the profit or loss in the year the asset
is derecognised.
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