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ANNUAL REPORT 2021 113

Notes to the fiNaNcial statemeNts

2. significant accOUnting POlicies (cOnt’D.)

2.4 Summary of significant accounting policies (cont’d.)
(b) Property and equipment and right-of-use assets (cont’d.)
Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation of other property and
equipment is provided for on a straight-line basis over the estimated useful lives of the assets as follows:
Building 50 - 99 years
Renovation and improvement 10 years
Furniture, electrical fittings and equipment 10 years
Motor vehicles 5 years
Office equipment 5 years
Computers 3 years
Right-of-use assets Tenure of the agreement
Assets under construction/work-in-progress included in property and equipment are not depreciated as these
assets are not yet available for use.

The carrying values of property and equipment and right-of-use assets are reviewed for impairment when events
or changes in circumstances indicate that the carrying value may not be recoverable. The policy for the recognition
and measurement of impairment is in accordance with Note 2.4(e).

The residual value, useful life and depreciation method are reviewed at each financial year-end, and adjusted
prospectively, if appropriate.

An item of property and equipment and right-of-use assets is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included
in the statement of profit and loss in the year the asset is derecognised.
(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.