Page 198 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS

for the financial year ended 31 december 2020 (continUed)

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.6 property and equipment (continued)
Recognition and measurement (continued)
When significant parts of an item of property and equipment have different useful lives, they are accounted for as
separate items (major components) of property and equipment.
inteGrated annUal rePort 2020 with the carrying amount of property and equipment and is recognised net within “other income” or “other overhead
the gain or loss on disposal of an item of property and equipment is determined by comparing the proceeds from disposal
expenses” respectively in the profit or loss.
Subsequent costs

the cost of replacing a component of an item of property and equipment is recognised in the carrying amount of the
item if it is probable that the future economic benefits embodied within the component will flow to the Group or the
company, and its cost can be measured reliably. the carrying amount of the replaced component is derecognised to
profit or loss. the costs of the day-to-day servicing of property and equipment are recognised in profit or loss as incurred.
Depreciation
192
depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are
assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is
depreciated separately.
bimb holdinGS berhad 199701008362 (423858-X) lives unless it is reasonably certain that the Group and the company will obtain ownership by the end of the lease term.
depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of
an item of property and equipment. leased assets are depreciated over the shorter of the lease term and their useful

freehold land is not depreciated. Property and equipment under construction are not depreciated until the assets are
ready for their intended use.
the estimated useful lives for the current and comparative periods are as follows:
50 years
• Buildings
• Building improvements and renovations
2 – 10 years
• Furniture, fixtures and fittings
5 – 6 years
• Office equipment 6 – 10 years
• Motor vehicles 5 years
• Computer equipment and software 3 – 7 years
• Long term leasehold land 50 years

depreciation methods, useful lives and residual values are reviewed at end of the reporting period, and adjusted as
appropriate. changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are accounted for by changing the depreciation period or method, as appropriate and treated as
changes in accounting estimates.