Page 103 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
S ar o significant acco nting po icies contin ed
o p ter so tware
So tware ac uired y the Group is stated at cost less accumulated amortisation and accumulated impairment losses.
Su se uent expenditure on so tware assets is capitalised only when it increases the uture economic enefits em odied in the specific asset to which it relates. All other expenditure is expensed as incurred. Amortisation is reco nised in the income statement on a strai ht line asis over the estimated use ul li e o the so tware, rom the date that it is availa le or use. he estimated use ul li e o so tware is three years. Amortisation methods, use ul lives and residual values are reviewed at each financial year end and ad usted i appropriate.
pair ent o non financia assets
he carryin amounts o the Group’s non financial assets other than de erred tax assets, are reviewed at each reportin date to determine whether there is any indication o impairment. I any such indication exists then the asset’s recovera le amount is estimated. An impairment loss is reco nised i the carryin amount o an asset or its cash eneratin unit exceeds its recovera le amount. A cash eneratin unit is the smallest identifia le asset that enerates cash ows that are lar ely independent rom other assets. Impairment losses are reco nised in profit or loss.
Impairment losses reco nised in respect o cash eneratin units are allocated first to reduce the carryin amount o any oodwill allocated to the units and then to reduce the carryin amount o the other assets in the unit roup o units on a pro rata asis.
he recovera le amount o an asset or cash eneratin unit is the reater o its value in use and its air value less costs to sell. In assessin value in use, the estimated uture cash ows are discounted to their present value usin a pre tax discount rate that re ects current mar et assessments o the time value o money and the ris s specific to the asset.
In respect o other assets, impairment losses reco nised in prior periods are assessed at each reportin date or any indications that the loss has decreased or no lon er exists. An impairment loss is reversed i there has een a chan e in the estimates used to determine the recovera le amount. An impairment loss is reversed only to the extent that the asset’s carryin amount does not exceed the carryin amount that would have een determined, net o depreciation or amortisation, i no impairment loss had een reco nised.
2.15 Provisions
A provision is reco nised i , as a result o a past event, the Group has a present le al or constructive o li ation that can e estimated relia ly, and it is pro a le that an out ow o economic enefits will e re uired to settle the o li ation. Provisions are determined y discountin the expected uture cash ows at a pre tax rate that re ects current mar et assessments o the time value o money and, where appropriate, the ris s specific to the lia ility.
A provision or restructurin is reco nised when the Group has approved a detailed and ormal restructurin plan, and the restructurin either has commenced or has een announced pu licly. uture operatin costs are not provided or. A provision or onerous contracts is reco nised when the expected enefits to e derived y the Group rom a contract are lower than the unavoida le cost o meetin its o li ations under the contract. he provision is measured at the present value o the lower o the expected cost o terminatin the contract and the expected net cost o continuin with the contract. Be ore a provision is esta lished, the Group reco nises any impairment loss on the assets associated with that contract.
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