Download the Annual report 2011 - Unisa

UNISA ANNUAL REPORT 2011
Routine maintenance costs are recognised to profit or loss as they are incurred. The costs of major maintenance
or overhaul of an item of property, plant or equipment are recognised as an expense, except if the cost
had been recognised as a separate part of the cost of the item of property, plant and equipment.
2.5 INVESTMENT PROPERTIES
Investment properties are properties which are either held to earn rental income and/or for capital appreciation
but not for sale in the ordinary course of business, for use in the production or supply of goods or services, or
for administrative purposes. Owner-occupied properties are held for educational activities and administrative
purposes. This distinguishes owner-occupied properties from investment properties.
Investment properties are carried at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is calculated by using the straight-line method to write off the depreciable amount over the investment
property’s estimated useful life.
The useful life is currently:
• Buildings and improvements - 50 years (2010 – 50 years)
On disposal of an investment property, the difference between the net disposal proceeds and the carrying
amount is recognised in profit or loss.
2.6 NON-CURRENT ASSETS HELD FOR SALE
Non-current assets (or disposal groups comprising assets and liabilities) which are expected to be recovered
primarily through sale rather than through continuing use are classified as held for sale.
Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured
in accordance with the University’s accounting policies. Then, on initial classification as held for sale,
non-current assets and disposal groups are recognised at the lower of the carrying amount and the fair value
less costs to sell.
Impairment losses on initial classification as held for sale are included in profit or loss. The same applies to
gains and losses on subsequent re-measurement. Gains are not recognised in excess of any cumulative impairment
loss. Any impairment loss on a disposal group is allocated to the assets and liabilities on a pro rata basis,
except that no loss is allocated to inventories, financial assets and employee benefit assets, which continue to
be measured in accordance with the University’s accounting policies.
2.7 INTANGIBLE ASSETS
An intangible asset is an identified, non-monetary asset that has no physical substance. An intangible asset is
recognised when:
• it is identifiable
• the University has control over the asset as a result of a past event
• it is probable that economic benefits will flow to the University
• the cost of the asset can be measured reliably
The amortisation period and amortisation method are reassessed annually.
2.7.1 Research
Expenditure on research activities undertaken with the prospect of gaining new scientific or technical knowledge
and understanding is recognised in profit or loss when incurred.
2.7.2 Computer software
Acquired computer software that is significant and unique to the business is capitalised as an intangible asset
on the basis of the cost incurred to acquire and make available for use the specific software.
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