Sample Disclosure – Intangible Assets (14 April 2009)


Intangible assets


Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use of the specific software. These costs are amortised over their estimated useful lives. Costs associated with developing or maintaining computer software programmes are recognised as an expense when incurred. Cost that are directly associated with identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Costs include employee costs incurred as a result of developing software and an appropriate portion of relevant of overheads. Costs which enhances or extends the performance of computer software programme beyond their original specifications is recognised as a capital improvement and added to the original cost of software. Computer software development costs recognised as assets are amortised using straight line method over their estimated useful lives, not exceeding a period of 10 years.

Sample Disclosure – Intangible Assets (6 January 2009)

Intangible assets

i. Brand name

The Company’s brand name is stated at cost less any impairment loss. The useful life of the Company’s brand name is estimated to be indefinite because based on the Company’s current product market share, the directors are of the opinion that there is no foreseeable limit to the period over which the brand name is expected to generate net cash flows to the Company. They are not amortised but tested for impairment annually or more frequently when indicators of impairment are identified.

ii. Computer software

Acquired computer software licences are capitalised on the basis of the cost incurred to acquire and bring to use the specific software. These costs are amortised on a straight line basis over their expected useful lives.