4. MATERIAL ACCOUNTING POLICIES (continued) 4.4 Property, plant and equipment (continued) (iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised as an expense in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment, unless it is included in the carrying amount of another asset. Depreciation is recognised from the date that the property, plant and equipment are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use. The estimated useful lives for the current and comparative years are as follows: • Leasehold land and buildings Lease period ranging from 3 to 18 years • Renovation 3 – 10 years or lease term whichever is shorter • Computer equipment and software 1 – 3 years • Plant and machinery 5 – 15 years • Furniture, fittings and equipment 3 – 10 years • Motor vehicles 10 years Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if appropriate. (vi) Reclassification to investment property When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and reclassified accordingly. Any gain arising on remeasurement is recognised in profit or loss to the extent that it reverses a previous impairment loss on the specific property, with any remaining gain recognised in OCI and presented in the revaluation reserve in equity. Any loss is recognised immediately in profit or loss. When the property is sold, the related amount in the revaluation reserve is transferred to retained earnings. 4.5 Intangible assets and goodwill (i) Goodwill Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For the measurement of goodwill at initial recognition, see note 4.1(i). Subsequent measurement Goodwill is measured at cost less accumulated impairment losses. In respect of associates and joint ventures, the carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of the associates and joint ventures. (ii) Other intangible assets Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses. Notes to the Financial Statements Year ended 31 December 2024 178 PERENNIAL HOLDINGS PRIVATE LIMITED
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