Page 86 - Neal and Massy Holdings Annual Report 2012

84 2012
NOTES TO THE Consolidated FINANCIAL STATEMENTS
September 30, 2012
Expressed in Thousands of Trinidad and Tobago dollars
2 Summary Of Significant Accounting Policies (continued)
2.7 Intangible assets (continued)
b) Computer Software (continued)
Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development
costs previously recognised as an expense are not recognised as an asset in a subsequent period.
Computer software development costs recognised as assets are amortised over their estimated useful lives, which do
not exceed three years.
c) Brands
Brands acquired in a business combination are recognised at fair value at the acquisition date, and are being amortised
over seven to twenty years.
2.8 Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are
subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value-in-use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows
(cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal
of the impairment at each reporting date.
2.9 Non-current assets (or disposal groups) held for sale
Non-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered
principally through a sale transaction and the sale is considered highly probable. They are stated at the lower of carrying amount
and fair value less costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than
through continuing use and the sale is considered highly probable.
2.10 Financial assets
a) Classification
The Group classifies its financial assets in the following categories: financial assets at fair value through profit or loss,
loans and receivables, held-to-maturity and available-for-sale. The classification depends on the purpose for which the
financial assets were acquired. Management determines the classification of its financial assets at initial recognition.