Minerva Equity Limited - 31 March 2019 Final 19.08.2019 - Flipbook - Page 34
Minerva Equity Limited (formerly DMWSL 881 Limited)
Notes to the financial statements
for the period ended 31 March 2019 (continued)
3 Summary of significant accounting policies (continued)
Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment
losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount
of the assets to their residual value over their estimated useful lives, as follows:
Software
Client relationships
Brands
- 3 - 8 years
- 5 - 15 years
- 5 - 20 years
Costs associated with maintaining computer software are recognised as an expense as incurred.
Development costs that are directly attributable to the design and testing of identifiable and unique
software products controlled by the Group are recognised as intangible assets when the following
criteria are met:
-
it is technically feasible to complete the software so that is will be available for use;
-
management intends to complete the software and use or sell it;
-
there is an ability to use or sell the software;
-
it can be demonstrated how the software will generate probable future economic benefits;
-
adequate technical, financial and other resources to complete the development and to use or
sell the software are available; and
-
the expenditure attributable to the software during its development can be reliably measured.
Separately acquired brands and non-contractual customer relationships are shown at historical cost.
Brands and customer relationships have a finite useful life and are carried at cost less accumulated
amortisation.
Tangible assets
Tangible assets are included at historical purchase cost less accumulated depreciation and
accumulated impairment losses. Cost includes the original purchase price of the asset and the costs
directly attributable to bringing the asset into its working condition for its intended use.
Vehicles, plant, fixtures, fittings, and equipment
Vehicles, plant, fixtures, fittings and equipment are stated at cost less accumulated depreciation and
accumulated impairment losses.
Depreciation and residual values
Depreciation of assets is calculated at rates expected to write off cost less the estimated residual
value of the relevant assets over their estimated economic lives. The expected useful lives of the
assets to the business are reassessed periodically in light of experience. The estimated economic
lives used are principally as follows:
Vehicles, plant, fixtures, fittings and equipment
Leasehold property
- 1 to 15 years
- Remaining life of the lease
Assets under construction are not depreciated until they are ready for use.
Derecognition
Tangible assets are derecognised on disposal or when no future economic benefits are expected.
On disposal, the difference between the net disposal proceeds and the carrying amount is
recognised in the profit and loss account.
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