NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
e)
Intangible assets
Intangible assets acquired separately are measured initially at cost. Following initial acquisition, intangible
assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.
Internally generated intangible assets, excluding capitalised development costs, are not capitalised and
expenditure is expensed in profit or loss in the year in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method are reviewed at least at each financial year-end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied in
the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated
as changes in accounting estimates.
Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually,
or more frequently if the events and circumstances indicate that the carrying value may be impaired
either individually or at the cash-generating unit level. Such intangible assets are not amortised. The
useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether
the useful life assessment continues to be supportable. If not, the change in useful life from indefinite to
finite is made on a prospective basis.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when
the asset is derecognised.
Order book
The order book is stated at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is calculated using percentage of the actual realisation of order book over the expected
order book, not exceeding 2 years.
Brand
The brand, acquired in business combination, is amortised on a straight line basis over its finite useful life
of 10 years.
Licenses
The licenses, acquired in business combination, are amortised on a straight line basis over its finite useful
lives between 9 months to 29 months.
Service agreement
The service agreement, acquired in business combination, is amortised on a straight line basis over its
finite useful life of 3 years.
Favourable contract
The favourable contract, acquired in business combination, is amortised on a straight line basis over its
finite useful life of 10 months.
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ISOTEAM LTD.
ANNUAL REPORT 2016
