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BLUE LABEL INTEGRATED ANNUAL REPORT 2014
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
1.
SIGNIFICANT ACCOUNTING POLICIES (continued)
Property, plant and equipment (continued)
Property, plant and equipment is subsequently carried at historical cost less accumulated depreciation and
any accumulated impairment losses.
Property, plant and equipment is depreciated on the straight-line basis over each asset’s estimated useful life.
Depreciation is calculated on the straight-line basis to write off the cost of the assets to their residual values
over their estimated useful lives as follows:
Motor vehicles
20% – 25%
Furniture and fittings
16.67% – 25%
Office equipment
25%
Computer equipment
25% – 33.3%
Terminals and vending machines
16.67%
Media equipment
33.33%
Plant and machinery
20%
Buildings
8.33%
Major leasehold improvements are amortised over the shorter of their respective lease periods and estimated
useful life.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are
capitalised as part of the cost of those assets. No such qualifying assets exist at year-end.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at year-end.
Gains and losses on disposal of property, plant and equipment are determined as the difference between the
carrying amount and the fair value of the sale proceeds, and are included in operating profit.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down
immediately to its recoverable amount.
Intangible assets
(a) Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to
use the specific software. Computer software has a finite useful life and is subsequently carried at cost less
accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost of
the computer software over its estimated useful life (three to 10 years).
Costs associated with the maintenance of existing computer software programmes are expensed as incurred.