CGE ANNUAL REPORT

2022/23 ANNUAL REPORT

Financial Statements for the year ended 31 March 2023

Accounting Policies

1.7.2. Repairs and maintenance Maintenance and repairs, which neither materially add to the value of assets nor appreciably prolong their useful lives, are expensed during the financial year in which they are incurred. 1.7.3. Depreciation Depreciation is calculated on the depreciable amount, using the straight-line method over the estimated useful lives of the assets. Components of assets that are significant in relation to the whole asset and that have different useful lives are depreciated separately. The depreciable amount is determined after considering an assets’ residual value, where applicable.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item

Depreciation method

Average useful life

Office Furniture Motor vehicles Office equipment

Straight-line Straight-line Straight-line Straight-line Straight-line

5 - 20 years 7 - 15 years 5 - 20 years 5 - 20 years 2 - 4 years

IT equipment Leased Assets

1.7.4. De-recognition The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying value and is recognised in Surplus or Deficit.

1.7.5

Impairment

Where the carrying amount of an item of property, plant and equipment is greater than the estimated recoverable service amount, it is written down immediately to its recoverable service amount and an impairment loss is charged to Surplus or Deficit. An impairment is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined had no impairment been recognised. A reversal of the impairment is recognised in Surplus or Deficit. Intangible assets Intangible assets consist of computer software. Intangible assets are stated at cost less accumulated amortisation and any accumulated impairment losses. 1.8

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