CCS Annual Report 2015-2016

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:

NOTES TO FINANCIAL STATEMENTS

31 MARCH 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(CONT’D)

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 itemof plant and equipment is determined as the difference

between the sales proceeds and the carrying amounts of the asset and it is recognised in income or expenditure.

INTANGIBLEASSETS

- 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

intendeduse. Costs associatedwithmaintaining the computer softwareare recognisedas anexpensewhen incurred.

Computersoftware issubsequentlycarriedat cost lessaccumulatedamortisationandaccumulated 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.

IMPAIRMENT OF NON-FINANCIAL ASSETS

- At the end of each reporting period, the Commission reviews the

carrying amounts of its assets to determine whether there is any indication that those assets have suffered an

impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine

the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual

asset, the Commission estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the

estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current

market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,

the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss

is recognised immediately in income or expenditure.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is

increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not

exceed the carrying amount that wouldhave beendeterminedhadno impairment loss been recognised for the asset

(cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

CCS ANNUAL REPORT 2015-2016

FINANCIAL STATEMENTS