2. ACCOUNTING POLICIES (CONTD.) 2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTD.) (c) Intangible assets (contd.) (ii) Other intangible assets (contd.) Research and development costs Research and development costs are recognised as an expense except that costs incurred on individual development project are recognised as development asset to the extent that such expenditure is expected to generate future economic benefits. Development costs are only recognised as an asset when it is probable that future economic benefits will be realised as a result of the specific expenditure and the costs can be measured reliably. Following the initial recognition of the development expenditure, the asset is carried at cost less accumulated amortisation and accumulated impairment losses. Development costs that have been capitalised are amortised over the period of expected future economic benefits from the related project of 15 years. (d) Property, plant and equipment All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Freehold land has an unlimited useful life and therefore is not depreciated. Capital work-in-progress is not depreciated as these assets are not available for use. Depreciation of other property, plant and equipment is provided for on a straight-line basis to write off the cost of each asset to its residual value over the estimated useful life, at the following annual rates: Buildings 1.8% – 7.5% Plant and equipment 5% – 50% Furniture and fittings 10% – 20% Motor vehicles 20% Computers 20% – 33% Machinery 10% – 20% Office equipment 10% – 20% The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The residual value, useful life and depreciation method are reviewed at each financial year-end, and adjusted prospectively, if appropriate. Notes to the Financial Statements For the year ended 31 December 2024 289 FINANCIAL STATEMENTS
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