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NOTESTOTHEFINANCIALSTATEMENTS
31 DECEMBER 2013
2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.4 Summary of significant accounting policies (cont’d)
(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.
These include land held for a currently undetermined future use.
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 statements of income on a straight-line basis over the estimated useful lives of fifty
(50) 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is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on
the retirement or disposal of an investment property is recognised in statements of income 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 asset 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 statements of income 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.
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EXIM Bank Annual Report 2013