SEC Form 17-A: Annual Report - the solid group inc website

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2.8 Other Assets
Other assets pertain to other resources controlled by the Company as a result of past
events. They are recognized in the financial statements when it is probable that the
future economic benefits will flow to the entity and the asset has a cost or value that can
be measured reliably.
Other recognized assets of similar nature, where future economic benefits are expected
to flow to the Company beyond one year after the end of the reporting period
(or in the normal operating cycle of the business, if longer), are classified as non-current
assets.
2.9 Property, Plant and Equipment
Property, plant and equipment, except land, are carried at acquisition cost or
construction cost less subsequent depreciation, amortization and any impairment losses.
Land held for use in production or administration is stated at cost less any impairment
losses.
The cost of an asset comprises its purchase price and directly attributable costs of
bringing the asset to working condition for its intended use. Expenditures for
additions, major improvements and renewals are capitalized; expenditures for repairs
and maintenance are charged to expense as incurred.
Depreciation is computed on the straight-line basis over the estimated useful lives of
the assets as follows:
Buildings and improvements
Test, communication and other equipment
Cable system equipment
Machinery and equipment
Transportation equipment
Computer system
Furniture, fixtures and office equipment
Tools and equipment
10 to 25 years
5 to 20 years
2 to 20 years
5 to 10 years
5 years
2 to 5 years
2 to 5 years
2 to 3 years
Construction in progress represents properties under construction and is stated at cost.
This includes cost of construction, applicable borrowing cost (see Note 2.20) and other
direct costs. The account is not depreciated until such time that the assets are
completed and available for use.
Leasehold improvements are amortized over the estimated useful lives of the assets
from 2 to 15 years or the term of the lease, whichever is shorter.
Fully depreciated and amortized assets are retained in the accounts until they are no
longer in use and no further charge for depreciation and amortization is made in respect
of those assets.
An asset’s carrying amount is written down immediately to its recoverable amount if the
asset’s carrying amount is greater than its estimated recoverable amount (see Note 2.18).
The residual values and estimated useful lives of property and equipment are reviewed,
and adjusted if appropriate, at the end of each reporting period.