PAKISTAN

3.1 Property and Equipment
Owned
These are stated at cost less accumulated depreciation and accumulated impairment losses, if any, except for freehold
and leasehold land and donated land and buildings. Cost include expenditure directly attributable to the acquisition of an
asset. The cost of self-constructed assets includes the cost of materials, direct labour and any other costs directly
attributable to bring the assets to a working condition for their intended use.
Subsequent costs are included in the asset's carrying amount or are recognized as a separate asset, as appropriate, only
when it is probable that future benefits associated with the item will flow to the Foundation and the cost of the item can
be measured reliably.
The value assigned to the leasehold land is not depreciated since the lease is renewable at the option of the lessee.
Donated land is stated at nominal value or actual cost of acquisition as the case may be. Donated buildings are initially
measured at valuation determined by the management and subsequently carried at valuation less accumulated
depreciation and accumulated impairment, if any.
Depreciation is charged to income and expenditure account under the straight-line basis at rates specified in note 4.1 to
these financial statements. Depreciation is charged on operating fixed assets from the date asset is available for intended
use upto the date the asset is disposed off. Depreciation methods, useful lives and residual values are reviewed at each
reporting date. Normal repairs and maintenance are charged to income and expenditure account as and when incurred.
Gains and losses on disposal of an item of property and equipment are taken to income and expenditure account
currently.
Capital work in progress is stated at cost accumulated upto the reporting date. Assets are transferred to operating fixed
assets when they are available for intended use.
3.2 Intangible Assets
Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. Intangible
assets are amortized on a straight line basis over their estimated useful lives.
Costs that are directly associated with identifiable software products controlled by the Foundation and have probable
economic benefit beyond one year are recognized as intangible assets.
Costs associated with maintaining computer software products are recognized as expense as and when incurred.
3.3 Investments
All investments in equity securities and units / certificates of open and closed end mutual funds classified as available for
sale are initially recognized at fair value and subsequently remeasured at fair value and any resultant gain or loss
recognized directly in the funds and reserves until derecognized or impaired, when the accumulated adjustments
recognized in funds and reserves are included in the income and expenditure account. Any reversal in impairment loss is
recognized in income and expenditure account except for equity instruments in which case it is recognized in statement
of funds and reserves.
The fair value of these investments are determined on the basis of year-end bid prices obtained from stock exchange
quotations and the relevant redemption prices for open end mutual fund units.
Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity
that an entity has the positive intention and ability to hold to maturity. Investments classified as held to maturity are
recognized initially at fair value, plus attributable transaction cost. Subsequent to initial recognition, these are stated at
amortized cost.
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