RTIA Annual Report E-Book

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

An intangible asset arising from development (or from the development phase of an internal project) is recognised when: - it is technically feasible to complete the asset so that it will be available for use or sale. - there is an intention to complete and use or sell it. - there is an ability to use or sell it. - it will generate probable future economic benefits or service potential. - there are available technical, financial and other resources to complete the development and to use or sell the asset. - the expenditure attributable to the asset during its development can be measured reliably. Intangible assets with a finite useful life are amortised over their useful life. Amortisation commences when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date. If expectations differ from previous estimates, the changes shall be accounted for as a change in accounting estimates. Amortisation of the depreciable amount is provided to write down the intangible assets on a straightline basis to their residual values as follows:

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset. The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. 1.5 Intangible assets Intangible assets are initially measured at cost. Cost includes any directly attributable cost of preparing the asset for its intended use. After initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets are derecognised on disposal or when no future economic benefits are expected from its use or disposal. Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in surplus or deficit as incurred.

129

Road Traffic Infringement Agency • Annual Report 2023/24