7 FINANCIAL STATEMENTS 289 2. ACCOUNTING POLICIES (CONTD.) 2.4 Summary of material accounting policies (contd.) (c) Intangible assets (contd.) (ii) Other intangible assets (contd.) Customer contracts and relationships Customer contracts and relationships acquired through business combination are capitalised at fair value as at the date of acquisition. Following initial recognition, the cost model is applied. The finite useful live of customer contracts and customer relationships are assessed to be ranging from 4.75 to 15 years (2024: 11 months to 15 years) and 3 to 10 years (2024: 3 to 10 years) respectively. Amortisation is charged on a straight line basis and the expense is recognised in profit or loss. Software Software that do not form an integral part of the related hardware have been reclassified as intangible assets. Software is considered to have finite useful lives, are stated at cost less any impairment losses and are amortised using the straight-line basis over the commercial lives of the underlying products between 3 and 10 years. 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%
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