Support Build Plan - Dimension Data

notes to the financial statements
1. Basis of Preparation
The Dimension Data Group (‘the Group’) comprises Dimension Data Holdings plc (‘the Company’) and its subsidiaries.
The financial statements are prepared according to the historical cost convention and in accordance with accounting standards applicable
in the United Kingdom.
2. Accounting Policies
Basis of consolidation
The consolidated financial statements include the financial statements of the Company and all its subsidiaries and its share of associates.
The results of subsidiaries are included from the effective dates of acquisition until the effective dates of disposal. All significant intergroup
transactions and balances have been eliminated on consolidation.
Turnover
Turnover comprises the aggregate amounts receivable for the sale of goods and installation, maintenance and service.
Maintenance revenue and licence fees
Maintenance revenue and licence fees are brought to account over the relevant contract periods.
Research and development
Research and development costs are recognised as an expense in the period in which they are incurred.
Goodwill
Where an investment in a subsidiary, joint venture or associated company is made, any difference between the purchase price and the fair
value of the attributable net assets is recognised as goodwill.
Goodwill arising on acquisitions prior to 1 October 1998 was set off against reserves in the year of acquisition. Goodwill arising on
acquisitions after 1 October 1998 is recognised within intangible fixed assets in the year of acquisition.
Amortisation is calculated on a straight line basis so as to write off the goodwill over its economic life, depending on the nature of the
acquisition, for a period not exceeding five years.
The unamortised balance is reviewed on a regular basis and, if an impairment in value has occurred, it is written off in the period in which
the circumstances have been determined.
Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation.
Depreciation is provided on a straight line basis at rates considered appropriate to reduce their book values to estimated residual values
over the useful lives of the assets.
The following rates are applied:
Leasehold land, buildings and improvements over the lease term.
Computer and workshop equipment 20-33.33% per annum.
Motor vehicles 25% per annum.
Office furniture and equipment 10% per annum.
62 DIMENSION DATA