ANNUAL REPORT 2014 An initial estimate of the costs of dismantling and removing the item and restoring the site, when the Company and its subsidiaries have obligation to do, have been included in cost of property, plant and equipment. Cost of addition, improvement, repair or extension of lease agreement that increase the future economic benefits are recognized as assets. Depreciation is separately calculated on each component of assets, when the cost of each component is significant in relation to the total cost of the item. The useful life and residual value of assets, and depreciation method are reviewed at least at each financial year-end. Depreciation is recognized as expense for each accounting period. 3.9. Intangible Assets Intangible assets are stated at cost less accumulated amortization and allowance for loss on impairment of assets (if any). Amortization is charged to the statements of income by the straight-line method from the date that intangible assets are available for use over the estimated useful lives of the economic benefit of the assets, Unless such lives are indefinite, intangible assets with an indefinite useful life are not amortized but are systematically tested for impairment at each statement of financial position date. The estimated useful lives are as follows: Computer Softwares 3-10 Years The Company and its subsidiaries recorded the amortization as expenses for each accounting period. 3.10. Impairment of Assets The Company and its subsidiaries should assess the impairment of assets i.e. Property, Plant and Equipment and Intangible assets whenever there is indication that an asset may be impaired, the impairment will be assessed by estimating the recoverable amount of asset, if it is below the carrying amount of the asset, it signs an asset is impairment. The company should recognize the impairment loss in the profit or loss. Recoverable amount of assets is the higher of an asset’s net selling price and its value in use, and it is determined from an individual asset or a cash-generating unit. 3.11. Liabilities, Provisions and Expenses The Company and its subsidiaries recognizes liabilities, provisions and expenses in the financial statements when it has legal obligation or possible obligation arising from past events, the settlement of which is expected to be made in the amount that can be estimated with sufficient reliability. The Company and its subsidiaries recognize accrued the dividend, approved by the resolution of ordinary shareholders’ meeting. 3.12. Revenue Recognition Revenue from sales of goods is recognized when significant risks and rewards of ownership have been transferred to the buyer based on the invoices value less discount, goods return, and amounting to the estimates (if any).
EN_Tipco_Annual Report 2014
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