Annual Report 2011 - The Malaysian Institute Of Certified Public ...

84Financial StatementPresident’s Statement2.4 Plant and Equipment and DepreciationItems of plant and equipment are stated at cost less accumulated depreciation and accumulatedimpairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.The cost of replacing part of an item of plant and equipment is recognised in the carrying amount of theitem or recognised as a separate asset, as appropriate, only when it is probable that future economicbenefits associated with the item will flow to the Institute and the cost of the item can be measuredreliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenanceare charged to the profit or loss during the financial year in which they are incurred.Depreciation is calculated on a straight line basis to write off the cost of the plant and equipment to theirresidual values over their estimated useful lives. The principal annual rates used are as follows:Furniture and fittings 10%Security system 10%Office equipment 20%Computers 33%The residual values and useful lives of assets are reviewed at each financial year end and adjustedprospectively, if appropriate, where expectations differ from previous estimates. Plant and equipmentare reviewed for impairment in accordance with the Institute’s accounting policy for impairment ofassets.An item of plant and equipment is derecognised upon disposal or when no future economic benefits areexpected from its use or disposal. The difference between the net disposal proceeds, if any, and the netcarrying amount is recognised in profit or loss.