Depreciation on assets is charged on a straight-line basis over the useful life of the
asset.
Depreciation is charged at rates calculated to allocate the cost or valuation of the
asset less any estimated residual value over its remaining useful life:
Estimated Useful Life
Account Name
(in Years)
Buildings 30
Office Equipment 5
Furniture and Fixtures 10
IT Equipment – Hardware 5
Library Books 5
Machineries 10
Agricultural, Fishery and Forestry 10
Communication Equipment 10
Construction and Heavy Equipment 10
Fire Fighting Equipment and Accessories 7
Hospital Equipment 10
Medical, Dental and Laboratory Equipment 10
Military and Police Equipment 10
Sports Equipment 10
Technical and Scientific Equipment 10
Other Machineries and Equipment 10
Motor Vehicles 7
Watercrafts 10
Other Transportation Equipment 10
Other Property, Plant and Equipment 5
The depreciation of road networks started in CY 2021, recognizing a 10-
year spread in their estimated useful lives.
3.5 Intangible assets
Intangible assets acquired separately are initially recognized at cost. The cost of
intangible assets acquired in a non-exchange transaction is their fair value at the
date of the exchange. Following initial recognition, intangible assets are carried
at cost less any accumulated amortization and accumulated impairment losses.
Internally generated intangible assets, excluding capitalized development costs,
are not capitalized, and expenditure is reflected in surplus or deficit in the period
in which the expenditure is incurred.
The useful life of the intangible assets is assessed as either finite or indefinite.
Intangible assets with a finite life are amortized over their useful lives. Software
is amortized for 10-20 years.
Intangible assets with a finite useful life are assessed for impairment whenever
there is an indication that the asset may be impaired. The amortization period and
the amortization method for an intangible asset with a finite useful life are
reviewed at the end of each reporting period. Changes in the expected useful life
or the expected pattern of consumption of future economic benefits embodied in
the asset are considered to modify the amortization period or method, as
appropriate, and are treated as changes in accounting estimates. The amortization
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