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Competition Commission of Singapore 77
Annual Report 2013/14
Notes to Financial Statements
31 March 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(e) PLANT AND EQUIPMENT - These are stated at cost less accumulated depreciation and any accumulated
impairment losses.
Depreciation is charged so as to write off the cost of plant and equipment, over their estimated useful
lives, using the straight-line method, on the following bases:
Furniture, fixtures and equipment - 8 years
Office equipment 5 to 10 years -
Computer equipment 3 to 5 years -
The estimated useful lives, residual values and depreciation method of plant and equipment are reviewed
at the end of each reporting period with the effect of any changes in estimates accounted for on a
prospective basis. Development work-in-progress is not depreciated.
The gain or loss arising on disposal or retirement of an item of plant and equipment is determined as the
difference between the sales proceeds and the carrying amounts of the asset is recognised in income or
expenditure.
(f) INTANGIBLE ASSETS - The acquired computer software licenses are initially capitalised at cost which
includes the purchase price (net of any discounts and rebates) and other directly attributable cost of
preparing the asset for its intended use. Costs associated with maintaining the computer software are
recognised as an expense when incurred.
Computer software is subsequently carried at cost less accumulated amortisation and accumulated
impairment losses.
Amortisation is calculated based on the cost of the asset, less its residual value. Amortisation is recognised
in income and expenditure on a straight-line basis over the estimated useful lives of intangible assets from
the date that they are available for use. The estimated useful lives for the current and comparative periods
are from 3 to 5 years. Amortisation methods, useful lives and residual values are reviewed at the end of
each reporting period and adjusted if appropriate.
Annual Report 2013/14
Notes to Financial Statements
31 March 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(e) PLANT AND EQUIPMENT - These are stated at cost less accumulated depreciation and any accumulated
impairment losses.
Depreciation is charged so as to write off the cost of plant and equipment, over their estimated useful
lives, using the straight-line method, on the following bases:
Furniture, fixtures and equipment - 8 years
Office equipment 5 to 10 years -
Computer equipment 3 to 5 years -
The estimated useful lives, residual values and depreciation method of plant and equipment are reviewed
at the end of each reporting period with the effect of any changes in estimates accounted for on a
prospective basis. Development work-in-progress is not depreciated.
The gain or loss arising on disposal or retirement of an item of plant and equipment is determined as the
difference between the sales proceeds and the carrying amounts of the asset is recognised in income or
expenditure.
(f) INTANGIBLE ASSETS - The acquired computer software licenses are initially capitalised at cost which
includes the purchase price (net of any discounts and rebates) and other directly attributable cost of
preparing the asset for its intended use. Costs associated with maintaining the computer software are
recognised as an expense when incurred.
Computer software is subsequently carried at cost less accumulated amortisation and accumulated
impairment losses.
Amortisation is calculated based on the cost of the asset, less its residual value. Amortisation is recognised
in income and expenditure on a straight-line basis over the estimated useful lives of intangible assets from
the date that they are available for use. The estimated useful lives for the current and comparative periods
are from 3 to 5 years. Amortisation methods, useful lives and residual values are reviewed at the end of
each reporting period and adjusted if appropriate.
