AFRICAN DAWN ANNUAL REPORT 2018 41 Accounting Policies continued 1.8 Income taxes Tax expense The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement. Current taxation Current taxation is the expected tax payable on the taxable income for the year, using taxation rates enacted or substantively enacted at the reporting date, and any adjustment to taxation payable in respect of previous years (prior- period tax paid). Deferred tax Deferred taxation is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxation is recognised in profit or loss for the period, except to the extent that it relates to a transaction that is recognised directly in equity or in other comprehensive income, or a business combination that is accounted for as an acquisition. Deferred taxation assets are recognised to the extent that it is probable that future taxable income will be available against which the unutilised taxation losses and deductible temporary differences can be used. Deferred taxation assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related taxation benefits will be realised. 1.9 Property, plant and equipment Property, plant and equipment is carried at historical cost less accumulated depreciation and any accumulated impairment losses. Depreciation is recognised so as to write off the cost of assets over their estimated useful lives, to their residual values. The straight-line method is used and the estimated useful lives are as follows: Property, plant and equipment Item Depreciation method Average useful life Furniture and fixtures Straight line 4 - 6 years IT equipment Straight line 3 - 5 years Leasehold improvements Straight line Length of leases Motor vehicles Straight line 5 years Office equipment Straight line 3 - 5 years Leased assets are depreciated at the shorter of the useful life or the period of the lease. The depreciation method, residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. If the recoverable amount is less than the carrying amount then the carrying amount is impaired in line with policy 1.11. 1.10 Intangible assets Computer software - internally generated Costs associated with maintaining computer software programmes are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the group are recognised as intangible assets when the criteria are met. Directly attributable costs that are capitalised as part of the software product include the software development employee costs and an appropriate portion of relevant overheads. Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.
AFRICAN DAWN 2018 Annual Report
To see the actual publication please follow the link above