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JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
INTEGRATED ANNUAL REPORT 2011
Property, plant and equipment is carried at cost less ac-
cumulated depreciation and any impairment losses.
The useful lives of items of property, plant and equip-
ment have been assessed as follows:
Item
Average useful life
Plant and machinery
1 to 15 years
Furniture and fixtures
5 to 7 years
Motor vehicles
5 years
Office equipment
5 years
IT equipment
3 to 4 years
Leasehold improvements
1 to 3 years
The residual value, useful life and depreciation method
of each asset are reviewed at the end of each reporting
period. If the expectations differ from previous estimates,
the change is accounted for as a change in accounting
estimate.
The depreciation charge for each period is recognised in
profit or loss unless it is included in the carrying amount
of another asset.
The gain or loss arising from the derecognition of an
item of property, plant and equipment is included in
profit or loss when the item is derecognised. The gain or
loss arising from the derecognition of an item of proper-
ty, plant and equipment is determined as the difference
between the net disposal proceeds, if any, and the carry-
ing amount of the item.
1.4 Intangible assets
An intangible asset is recognised when:
•
it is probable that the expected future economic
benefits that are attributable to the asset will flow to
the entity; and
•
the cost of the asset can be measured reliably.
Intangible assets are initially recognised at cost.
Expenditure on research (or on the research phase of an
internal project) is recognised as an expense when it is
incurred.
An intangible asset arising from development (or from
the development phase of an internal project) is recog-
nised 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.
•
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 are carried at cost less any accumulated
amortisation and any impairment losses.
An intangible asset is regarded as having an indefinite
useful life when, based on all relevant factors, there is
no foreseeable limit to the period over which the asset
is expected to generate net cash inflows. Amortisation
is not provided for these intangible assets, but they are
tested for impairment annually and whenever there is an
indication that the asset may be impaired. For all other
intangible assets amortisation is provided on a straight
line basis over their useful life.
The amortisation period and the amortisation method
for intangible assets are reviewed every period-end.
Reassessing the useful life of an intangible asset with a
finite useful life after it was classified as indefinite is an
indicator that the asset may be impaired. As a result the
asset is tested for impairment and the remaining carry-
ing amount is amortised over its useful life.
Accounting Policies -
Continued
Annual Financial Statements for the 15 months ended 30 September 2011