Annual REPORT

NOTES TO THE FINANCIAL STATEMENTS (Continued)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
2 ACCOUNTING POLICIES (Continued)
Property and equipment (Continued)
The group’s policy is to professionally revalue property at least once every five years. The last valuation was done on 31 December
2011. The valuation considered the highest and best use of the property. The basis of valuation is as follows:
Freehold land and buildings – open market value
Depreciation
Depreciation is calculated on a straight-line basis at annual rates estimated to write off the cost of each asset or the revalued
amounts, to its residual values over its estimated useful life as follows:
Buildings 2.5%
Fixtures, fittings and equipment 12.5%
ATM Machines 16.7%
Motor vehicles 20%
Computers 20%
Freehold land is not depreciated as it is deemed to have an indefinite life.
The depreciation charge to profit and loss is based on the carrying amounts of the property and equipment. The excess of
this charge over that based on the historical cost of the property and equipment is released each year from the revaluation
surplus to retained earnings.
Leasehold land
Payments to acquire interests in leasehold land are treated as prepaid operating rentals. They are stated at historical cost
and are amortised over the term of the related lease. When a lease includes land and buildings elements, the group assesses
the classification of each element as either a finance lease or an operating lease. In determining classification of the land
element, an important consideration is that land normally has an indefinite economic life. Therefore the finance lease or
operating lease classification of the land is considered a critical area of judgment. See note 3 to these financial statements.
Intangible assets - computer software costs
Generally, costs associated with developing computer software programmes are recognised as an expense incurred. However,
costs that are clearly associated with an identifiable and unique product which will be controlled by the group and has a
probable benefit exceeding the cost beyond one year, are recognised as an intangible asset.
Expenditure which enhances and extends computer software programmes beyond their original specifications and lives is
recognised as a capital improvement and added to the original costs of the software.
Computer software development costs recognised as assets are stated at cost less amortisation. Amortisation is calculated
on a straight line basis over the estimated useful lives not exceeding a period of 3 years.
Impairment of non-financial assets
At the end of each reporting period, the group reviews the carrying amounts of its assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the
asset is estimated and an impairment loss is recognized in profit or loss whenever the carrying amount of the asset exceeds
its recoverable amount. Previously recognised impairment losses may be reversed to the extent of the assets carrying
amount.
50