CGE ANNUAL REPORT

2022/23 ANNUAL REPORT

Financial Statements for the year ended 31 March 2023

Accounting Policies

1.8.1 Amortisation Amortisation is charged so as to write off the cost or valuation of assets over their estimated useful lives, using the straightline method.

The estimated useful lives, residual values, and amortisation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.

Item

Amortisation method

Average useful life

Computer software

Straight-line

5 - 9 years

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between the sales proceeds and the carrying value and is recognised in Surplus or Deficit. Leases 1.9.1 Finance leases - lessee The discount rate used in calculating the present value of the minimum lease payments is the incremental borrowing rate. Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability. 1.9.2 Operating leases - lessee The lease expense recognised for operating leases is charged to Surplus or Deficit on a straight-line basis over the term of the relevant lease. To the extent that the straight-lined lease payments differ from the actual lease payments the difference is recognised in Surplus or Deficit as either lease payments in advance (operating lease asset) or lease payments payable (operating lease liability) as the case may be. This resulting asset and / or liability is measured as the undiscounted difference between the straight-line lease payments and the contractual lease payments. 1.9

1.10 Employee benefits 1.10.1 Short-term employee benefits

Short term employee benefits encompass all those benefits that become payable in the short term, i.e. within a financial year or within 12 months after the financial year. Therefore, short term employee benefits include remuneration, compensated absences and bonuses.

These short-term employee benefits are measured at their undiscounted costs in the period the employee renders the related service, or the specific event occurs.

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