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NOTES TO FINANCIAL STATEMENTS
(cont’d)
31 March 2016

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.7 Intangible assets

Intangible assets acquired separately are reported at cost less accumulated amortisation (where they have finite
useful lives) and accumulated impairment losses. Intangible assets with finite useful lives are amortised on a
straight-line basis over their estimated useful lives, on the following base:

Application Software - 3 years

The estimated useful life and amortisation method are reviewed at the end of each annual reporting period, with
the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite
useful lives are not amortised. Each period, the useful lives of such assets are reviewed to determine whether
events and circumstances continue to support an indefinite useful life assessment for the asset. Such assets
are tested for impairment annually and whenever there is an indication that the asset may be impaired.

2.8 Impairment — non-financial assets

The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amounts
are estimated. Where it is not possible to estimate the recoverable amount of an individual asset, the Group
estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and
consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating
units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and
consistent allocation basis can be identified.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows
that largely are independent from other assets and groups. Impairment losses are recognised in the statement
of profit or loss and other comprehensive income unless it reverses a previous revaluation, credited to equity, in
which case it is charged to equity. Impairment losses recognised in respect of cash-generating units are allocated
first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount
of the other assets in the unit (group of units) on a pro rata basis.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset or cash-generating unit. For the purpose of impairment testing, assets that cannot be tested
individually are grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or cash generating unit.

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