ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

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D

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2

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1

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E X P O R T C R E

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O C

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C

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F

T

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I

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U

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C

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E

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C

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A

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Accounting Policies

Depreciation is calculated to write off the cost of the assets to residual values on a straight-line basis over their expected useful lives. Equipment is depreciated over the following estimated useful lives: Computer equipment 3 – 6 years Furniture and fittings 5 – 9 years Office equipment 5 – 9 years Motor vehicles 9 years Residual value: Computer equipment R 2 000 The equipment's residual values, estimated useful lives and depreciation methods are reviewed at each reporting date and adjusted if appropriate at each reporting date. The estimation of useful life and residual value for the assets is based on the experience of the Corporation with similar assets as well as the manner that reflects the benefits to be derived from those assets. The effects of any revision are recognised in the statement of comprehensive income when the changes arise. The carrying amount of equipment is derecognised on disposal or where no future economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of equipment is included in the statement of comprehensive income when the item is derecognised. The gain or loss arising from the derecognition of an item of equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. The proceeds received for indemnity payments on loss or damage of equipment are recognised in the statement of comprehensive income as other income when they are received. Subsequent to initial recognition the intangible assets are measured at cost less accumulated amortisation and impairment losses. Amortisation is calculated to write off the cost of the intangible assets to residual value on a straight line basis over its expected useful lives. Intangible assets are amortised over the following estimated useful lives: Computer software and models 5 years The intangible assets’ residual values, estimated useful lives and amortisation methods are reviewed at each reporting date and adjusted if appropriate at each reporting date. The estimation of useful life and residual value for the assets is based on the experience of the Corporation with similar assets as well as the manner that reflects the benefits to be derived from those assets. The effects of any revision are recognised in the statement of comprehensive income when the changes arise. The carrying amount of an intangible asset is derecognised on disposal or where no future economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of intangible is included in the statement of comprehensive income when the item is derecognised. The gain or loss arising from the derecognition of an item of intangible is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. 1.7.3 Right of use assets The right of use asset is measured at cost less accumulated depreciation and accumulated impairment losses. Cost is made up of the initial measurement of the lease liability, plus any initial direct costs incurred by the Corporation. The Corporation depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the end of the lease term. The Corporation also assesses the right-of-use asset for impairment when such indicators exist. Right of use assets are depreciated over the following periods: Buildings: 5 years Computer Equipment: 3 years The carrying amount of leased assets is derecognised on termination of the lease agreement. 1.7.2 Intangible assets At initial recognition intangible assets are measured at cost.

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