Page 199 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

|
for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

|
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.7 Investment property
(i) Investment property carried at amortised costs achieving a leading repute
investment properties are properties which are owned or held under a leasehold interest to earn rental income
or for capital appreciation or for both but not for sale in the ordinary course of business, use in the production or |
supply of services or for administrative purposes. these include land held for a currently undetermined future use.
investment properties are stated at cost less accumulated depreciation and impairment losses, consistent with the
accounting policy for property and equipment as stated in accounting policy note 2.6.

cost includes expenditure that is directly attributable to the acquisition of the investment property. Paving the Way for a Sustainable future
depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of 50 years for
buildings. freehold land is not depreciated.
an investment property is derecognised on its disposal, or when it is permanently withdrawn from use and no
future economic benefit are expected from its disposal. the difference between the net disposal proceeds and the
carrying amount is recognised in profit or loss in the period in which the item is derecognised.
(ii) Reclassifications to/from investment property carried at amortised costs 193
When an item of property and equipment is transferred to investment property following a change in its use,
the carrying amount of the item is reclassified to investment property as the Group adopts the cost model for
investment property.

2.8 Intangible assets
intangible assets that are acquired by the Group have finite useful lives and are measured at cost less any accumulated adhering to the best Governance Practices
amortisation and any accumulated impairment losses.
cost associated with maintaining computer software programmes are recognised as an expenses as incurred. development
costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the
|
Group are recognised as intangible assets.
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset
to which it relates. all other expenditure is recognised in profit or loss as incurred. Laying the Foundation for Financial Growth
Amortisation
intangible assets are amortised from the date that they are available for use. amortisation is based on cost of an asset
less its residual value. amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives
of intangible assets.
|
the policies applies to intangible assets and its estimated useful lives for the current and comparative periods are as
follows:
Useful
Amortisation methods used economic lives additional information & disclosure Summary
bancatakaful service fees Straight-line/units-of-production 5 years
computer softwares Straight-line 5 years
amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted,
|
if appropriate. changes in the expected useful life or the expected pattern of consumption of future economic benefits
24 th aGm information
embodied in the asset are accounted for by changing the amortisation period or method, as appropriate and treated as
changes in accounting estimates.