Annual Report and Accounts 2012/13 - Royal Bournemouth Hospital

Financial Accountsl the sale must be highly probable, forexample:- management are committed toa plan to sell the asset;- an active programme has begun tofind a buyer and complete the sale;- the asset is being actively marketedat a reasonable price;- the sale is expected to be completedwithin twelve months of the date ofthe classification as ‘Held for Sale’;and- the actions needed to complete theplan indicate it is unlikely that theplan will be dropped or significantchanges made to it.Following reclassification, the assets aremeasured at the lower of their existingcarrying amount and their ‘fair value lesscosts to sell’. Depreciation ceases to becharged. Assets are de-recognised whenall material sale contract conditions havebeen met.Property, plant and equipment which isto be scrapped or demolished does notqualify for recognition as ‘Held for Sale’and instead is retained as an operationalasset and the asset’s economic life isadjusted. The asset is de-recognisedwhen scrapping or demolition occurs.Donated, government grant andother grant funded assetsDonated and grant funded property, plantand equipment assets are capitalised attheir fair value on receipt. The donation/grant is credited to income at the sametime, unless the donor has imposeda condition that the future economicbenefits embodied in the grant are to beconsumed in a manner specified by thedonor, in which case, the donation/ grantis deferred within liabilities and is carriedforward to future financial years to theextent that the condition has not yet beenmet.The donated and grant funded assets aresubsequently accounted for in the samemanner as other items of property, plantand equipment.1.6 Intangible assetsRecognitionIntangible assets are non-monetaryassets without physical substance whichare capable of being sold separatelyfrom the rest of the Foundation Trust’sbusiness or which arise from contractualor other legal rights. They are recognisedonly where it is probable that futureeconomic benefits will flow to, or servicepotential be provided to, the FoundationTrust and where the cost of the asset canbe measured reliably.Internally generated intangibleassetsInternally generated goodwill, brands,mastheads, publishing titles and similaritems are not capitalised as intangibleassets.Expenditure on research is notcapitalised.Expenditure on development iscapitalised only where all of the followingcan be demonstrated:l the product is technically feasible tothe point of completion and will resultin an intangible asset for sale or use;l the Foundation Trust intends tocomplete the asset and sell or use it;l the Foundation Trust has the ability tosell or use the asset;l how the intangible asset will generateprobable future economic or servicedelivery benefits;l adequate financial, technical andother resources are available to theFoundation Trust to complete thedevelopment and sell or use the asset;andl the Foundation Trust can measurereliably the expenses attributable tothe asset during development.SoftwareSoftware which is integral to the operationof hardware (for example, an operatingsystem) is capitalised as part of therelevant item of property, plant andequipment. Software which is not integralAnnual Report and Accounts 2012/13 27