FASSET ANNUAL REPORT

Note 11 - Provisions.

asset will flow to the entity; and • the cost or fair value of the asset can be measured reliably.

1.4 Property, plant and equipment The cost of an item of property, plant and equipment is recognised as an asset when: • it is probable that future economic benefits or service potential associated with the item will flow to the entity; and • the cost of the item can be measured reliably. The useful lives of items of property, plant and equipment have been assessed as follows: Office furniture and fittings 10 Office equipment 5 Computer equipment 3 Leasehold improvements over the lease term FASSET assess whether there is any indication that the expected useful life of the asset has changed based on the condition of the asset if it has improved or declined during the reporting period. The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. Where the carrying amount of an item of property, plant and equipment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount (i.e. impairment losses are recognised). Property, plant and equipment is initially measured at cost.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item

Useful life

Computer software, other Intangible assets under development

2 years

over term of contract

The entity discloses relevant information relating to assets under construction or development, in the notes to the financial statements (see Note 7).

Intangible asset under development will be amortised once completed and in-use.

Intangible assets are derecognised: • on disposal; or • when no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from the derecognition of intangible assets is included in surplus or deficit when the asset is derecognised. Intangible assets are amortised on the straight line basis over their expected useful lives to their estimated residual value. Where the carrying amount of an intangible asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount (i.e impairment losses are recognised).

1.5 Intangible assets An intangible asset is recognised when:

• it is probable that the expected future economic benefits or service potential that are attributable to the

FASSET Annual Integrated Report 2020/21

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