RTIA Annual Report E-Book

Road Traffic Infringement Agency Annual Financial Statements for the year ended 31 March 2024 __________________________________________________________________________________________________________________________________________________________ Significant Accounting Policies

Property, plant and equipment is initially measured at cost.

used reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Agency. The useful life of an asset and residual values are reviewed annually and if expectations differ from previous estimates, the changes are accounted for as changes in accounting estimates. The entity re-assesses the useful lives and residual values of property, plant and equipment and intangible assets on an annual basis and in doing so considers the condition in use of the individual assets to determine the remaining period over which the asset will be used. Depreciation on all property, plant and equipment commences when the items are available for use. Depreciation is recognised on a straight basis to write off the cost of the assets to their residual values over the estimated useful lives. The useful life of items of property, plant and equipment have been assessed as follows:

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. All other costs are recognised in surplus or deficit as an expense when they are incurred. Repairs and maintenance costs are generally charged to expenses when they are incurred. However, major renovations are capitalised and included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the Agency. Major renovations are depreciated over the remaining useful life of the related asset. Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. The depreciation method

Item

Depreciation method

Average useful life

Furniture and fixtures

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

5 - 12 years 5 - 10 years 1 - 7 years

Motor vehicles Office equipment IT equipment

3 - 5 years Leasehold improvements Straight-line lease term or 25 years

The depreciable amount of an asset is allocated on a systematic basis over its useful life.

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Road Traffic Infringement Agency • Annual Report 2023/24