171 F INANC IAL Statements Sect ion 05 Annual Report 2022 NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 3. SIGNIFICANT ACCOUNTING POLICIES (contd.) Intangible assets (contd.) (d) Customer contracts Customer contracts are intangible assets acquired in a business combination and recognised separately from goodwill. Customer contracts are initially recognised at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on a straight-line basis over their estimated useful lives. (e) Computer software Computer software acquired separately are measured on initial recognition at cost. The cost of computer software acquired is the fair value as at the date of acquisition. Following the initial recognition, computer software are carried at cost less any accumulated impairment losses. The useful life of the computer software is assessed to be finite and is amortised on a straight-line basis over the estimated useful life and impaired. The amortisation period and the amortisation method for computer software are reviewed at least at each reporting date. Computer software are amortised on a straight-line basis over its estimated useful life of 5 years. (f) Capital work-in-progress Capital work-in-progress is stated at cost and is not amortised until it is ready for its intended use. Upon completion, capital work-inprogress is transferred to categories of intangible asset, depending on the nature of the assets. Investment Properties Investment properties, which are properties held to earn rentals and/or for capital appreciation, are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are carried at cost less accumulated depreciation and impairment loss. Investment properties are depreciated on a straight-line basis over their estimated useful lives. The useful lives of investment properties are reviewed, and adjusted if appropriate, at each reporting date. The effects of any revisions of the useful lives are included in the profit or loss for the financial period in which the changes arise. On the disposal of the investment property, or when it is permanently withdrawn from use and no economic benefits are expected from its disposal, it shall be derecognised (eliminated from the statements of financial position). The difference between the net proceeds and the carrying amount is recognised in profit or loss in the period of the retirement or disposal. Determination of fair value Fair value of investment properties are determined based on valuation carried out by an external and independent valuation firm, having appropriate recognised professional qualifications and recent experience in the location and category of properties being valued or, based on past transacted prices of the same properties and in the absence of past transacted prices, on the basis of the Directors’ best estimates. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
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