Annual Report - VÚB banka

2. Summary of significant accounting policies (continued)
2.16 Intangible assets
Intangible assets are recorded at historical cost
less accumulated amortization and impairment losses.
Amortization is calculated on a straight-line
basis in order to write off the cost of each asset to
its residual value over its estimated useful economic
life as follows:
Years
Software 5
Other intangible assets 5
Depreciation methods, useful lives and residual values
are reassessed at the reporting date.
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2.17 Property and equipment
Property and equipment are recorded at historical
cost less accumulated depreciation and impairment
losses. Acquisition cost includes the purchase price
plus other costs related to acquisition such as
freight, duties or commissions. The costs of expansion,
modernization or improvements leading
to increased productivity, capacity or effi ciency are
capitalized. Repairs and renovations are charged
to the income statement when the expenditure is
incurred.
Depreciation is calculated on a straight-line basis
in order to write off the cost of each asset to its
residual value over its estimated useful economic
life as follows:
Years
Buildings 5 - 40
Equipment 4, 6, 15
Other tangibles 4, 6, 15
Assets in progress, land and art collections are not
depreciated. Depreciation of assets in progress
begins when the related assets are put into use.
The Bank periodically tests its assets for impairment.
Where the carrying amount of an asset is
greater than its estimated recoverable amount, it is
written down to this recoverable amount. Where
assets are identifi ed as being surplus to the Bank’s
requirements, management assess the recoverable
value by reference to a net selling price based on
third party valuation reports, adjusted downwards
for an estimate of associated sale costs.
Depreciation methods, useful lives and residual values
are reassessed at the reporting date.
Annual Report 2007