NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
64
THE STRAITS TRADING COMPANY LIMITED
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.12 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 reflected 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 de-recognised.
(a)
Mining rights
Mining rights acquired are stated at their fair values as at the date of acquisition. Following initial recognition, mining
rights are carried at cost less accumulated amortisation and impairment losses, if any. Mining rights are amortised
based on the unit-of-production method so as to write off the mining rights in proportion to the depletion of
the estimated economically recoverable ore reserves and resources. Changes in the estimated economically
recoverable ore reserves and resources are accounted for on a prospective basis from the beginning of the year
in which the change arises. The amortisation period and the amortisation method are reviewed at least at each
financial year-end.
