Page 124 - Exim iar24_Ebook

EXIM BANK MALAYSIA
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NOTES TO THE FINANCIAL STATEMENTS

2. MATERIAL ACCOUNTING POLICY INFORMATION (cont’d)

2.4 Summary of material accounting policy information (cont’d)
(b) Property and equipment and right-of-use assets (cont’d)

The residual value, useful life and depreciation method are reviewed at each financial year-end, and adjusted
prospectively, if appropriate.
An item of property and equipment and right-of-use assets is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included
in the statement of profit or loss in the year the asset is derecognised.

(c) Intangible assets: Computer software
Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring the
specific software to use. The costs are amortised over their useful lives of three (3) years and are stated at cost
less accumulated amortisation and accumulated impairment losses, if any. Computer software is assessed for
impairment whenever there is an indication that it may be impaired. The amortisation period and amortisation
method are reviewed at least at each reporting date.

The policy for the recognition and measurement of impairment is in accordance with Note 2.4(e).
Costs associated with maintaining computer software programmes are recognised as expenses when incurred.
Costs that are directly associated with the production of identifiable and unique software products controlled
by the Group and the Bank, and that will probably generate economic benefits exceeding costs beyond one year,
are recognised as intangible assets. These costs include software development, employee costs and appropriate
portion of relevant overheads.
(d) Investment properties
Investment properties are properties which are owned to earn rental income or for capital appreciation or for both.

Investment properties are stated at cost less accumulated depreciation and impairment losses, consistent with
the accounting policy for property and equipment as stated in accounting policy Note 2.4(b).

Depreciation is charged to the statement of profit or loss on a straight-line basis over the estimated useful lives of
fifty to ninety nine (50 - 99) years for building. Freehold land is not depreciated.
Investment properties are derecognised when either they have been disposed of or when the investment property
is permanently withdrawn from use and no future economic benefits are expected from its disposal. Any gain or
loss on the retirement or disposal of an investment property is recognised in statement of profit or loss in the year
of retirement or disposal.

(e) Impairment of non-financial assets
The carrying amount of the assets, other than deferred tax assets, non-current assets held for sales and financial
assets (other than investments in subsidiaries), are reviewed at each reporting date to determine whether there
is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated to
determine the amount of impairment loss.

An impairment loss is recognised in the statement of profit or loss in the period in which it arises, unless the asset
is carried at a revalued amount, in which case the impairment loss is accounted for as a revaluation decrease to
the extent that the impairment loss does not exceed the amount held in the asset revaluation reserve for the same
asset.