ELRC 202324 Annual Report

Financial Statements for the year ended 31 March 2024 EDUCATION LABOUR RELATIONS COUNCIL | 2023/24 ANNUAL REPORT

L EDUCATION LABOUR RELATIONS COUNCI

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2024 (cont.)

Item

Depreciation method

Average useful life in years

Buildings

25 25 25 10

Lifts

Generators

Furniture and fittings

Straight line

Motor vehicles

7

Office equipment

8 to 10

Computer equipment

3 5

Leasehold improvements

The depreciation method and useful life of each asset are reviewed at each reporting date if there are indicators present that there has been a significant change from the previous estimate. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in surplus or deficit in the period. Property and equipment are subsequently stated at cost less accumulated depreciation and any accumulated impairment losses.

Land is not depreciated, and it is stated at cost.

Property and equipment is derecognised upon disposal or when no future economic benefits are expected from its continued use. Any gain or loss arising from the derecognition of an item of property and equipment, determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item, is included in surplus or deficit when the item is derecognised.

1.3 Intangible assets

Intangible assets are initially recognised at cost and subsequently at cost less accumulated amortisation and accumulated impairment losses.

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

Item

Depreciation method

Average useful life in years

Systems (operational) software

3 8

Straight line

Application software

The amortisation period and amortisation method for intangible assets are reassessed when there is an indication that there is a change from the previous estimate. An intangible asset is derecognised when no future economic benefits are expected from its continued use. Any gain or loss arising from the derecognition of an item of intangibles, determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item, is included in surplus or deficit when the item is derecognised.

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