when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives, as follows: • Buildings 50 years • Vehicles 5 years • Computer hardware 3 years • Furniture and fittings 6 years • Office equipment 5 years • Leasehold improvements the lesser of 5 years or the period of the lease • Right-of-use assets the lesser of the life of the asset or lease term Land is not depreciated. The assets’ residual values and useful lives are reviewed at each reporting date and adjusted if appropriate. An asset’s carrying amount is written down immediately to its recoverable amount if its carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are included in the Statement of Profit or Loss and Other Comprehensive Income and are determined by comparing sales proceeds with the carrying amount. 9. Intangible assets Computer software development costs Costs that are directly associated with the production of identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as an intangible asset when the following criteria are met: • it is technically feasible to complete the software product so that it will be available for use; • management intends to complete the software product and use or sell it; • there is an ability to use or sell the software product; • it can be demonstrated how the software product will generate probable future economic benefits; • adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and • the expenditure attributable to the software product during its development can be reliably measured. Direct costs include the external software development team’s costs. Computer software acquired as part of the software development project is capitalised on the basis of the acquisition costs and related costs to bring it to use. All other costs associated with acquiring, developing or maintaining computer software programmes are recognised as an expense as incurred. Computer software development costs recognised as assets are amortised, from the date the asset is available for 8. Property and equipment (continued) 117 Group Accounting Policies
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