QL Resources Berhad (428915-X)
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2. Significant accounting policies (Cont’d)
(f) Intangible assets (Cont’d)
(iv) Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill
and brands, is recognised in profit or loss as incurred.
(v) Amortisation
Goodwill and intangible assets with indefinite useful lives are not amortised but are tested for impairment
annually and whenever there is an indication that they may be impaired.
Other intangible assets are amortised from the date they are available for use. Amortisation is based on the
cost of an asset less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over
the estimated useful lives of intangible assets.
The estimated useful lives for the current and comparative periods are as follows:
Capitalised development costs 10 years
Patents and trademarks 15 years
Amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and
adjusted, if appropriate.
(g) Investment properties
(i) Investment properties carried at cost
Investment properties are properties which are owned or held under a leasehold interest to earn rental income
or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production
or supply of goods or services or for administrative purposes.
Investment properties are measured at cost less any accumulated depreciation and any accumulated
impairment losses, consistent with the accounting policy for property, plant and equipment as stated in Note
2(d).
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives.
An investment property is derecognised on its disposal, or when it is permanently withdrawn from use and no
future economic benefits are expected from its disposal. The difference between the net disposal proceeds
and the carrying amount is recognised in profit or loss in the period in which the item is derecognised.
(ii) Reclassification to/from investment properties
When an item of property, plant and equipment is transferred to/from investment property following a change
in its use, the transfer does not change the cost and the carrying amount of that property transferred.
Notes to the Financial Statements
(Cont’d.)
