Te pŪrongo 2012
Amortisation
A summary of policies applied to the group’s intangible
assets is as follows:
The amortisation period and amortisation method
for each class of intangible asset having a finite life
are reviewed at the end of each financial year. If the
expected useful life or expected pattern of consumption
is different from the previous assessment, changes are
made accordingly.
The carrying value of each class of intangible asset
is reviewed annually for indicators of impairment.
Intangible assets are tested for impairment where an
indicator of impairment exists.
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 the surplus or deficit when
the asset is de-recognised.
All other research and development costs are recognised
as expenses in the surplus or deficit in the year in which
they are incurred.
5. Impairment of property, plant and
equipment and intangible assets
Intangible assets that have an indefinite useful life or are
not yet available for use are not subject to amortisation
and are tested annually for impairment. Assets that
have a finite useful life are reviewed for indicators of
impairment at each balance date. When an asset is found
to be impaired, a recoverable amount is estimated. An
impairment loss is recognised for the amount by which
the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an
asset’s fair value less costs to sell and value in use.
Value in use is a term for depreciated replacement
cost for an asset where the future economic benefits
or service potential of the asset are not primarily
dependent on the asset’s ability to generate net cash
inflows and where Te Wānanga o Aotearoa would, if
deprived of the asset, replace its remaining future
economic benefits or service potential.
The value in use for cash-generating assets is the present
value of expected future cash flows.
If an asset’s carrying amount exceeds its recoverable
amount, the asset is impaired and the carrying amount
is written down to the recoverable amount. For revalued
assets the impairment loss is recognised against the
revaluation reserve for that class of asset. Where that
results in a debit balance in the revaluation reserve, the
balance is recognised in the surplus or deficit.
For assets not carried at a revalued amount, the
total impairment loss is recognised in the surplus
or deficit.
The reversal of an impairment loss on a revalued asset is
credited to other comprehensive income and increases
the asset revaluation reserve for that class of asset.
However, to the extent that an impairment loss for that
class of asset was previously recognised in the surplus
or deficit, a reversal of the impairment loss is also
recognised in the surplus or deficit.
For assets not carried at a revalued amount, the
reversal of an impairment loss is recognised in the
surplus or deficit.
6. Other financial assets
Financial assets are initially recognised at fair value plus
transaction costs unless they are carried at fair value
through surplus or deficit in which case the transaction
costs are recognised in the surplus or deficit.
Purchases and sales of financial assets are recognised
on trade-date, the date on which the organisation and
group commits to purchase or sell the asset. Financial
assets are derecognised when the rights to receive cash
flows from the financial assets have expired or have
been transferred and the organisation and group has
transferred substantially all the risks and rewards of
ownership.
Financial assets are classified into the following
categories for the purposes of measurement:
• fair value through surplus or deficit;
• loans and receivables; and
• fair value through other comprehensive income.
Classification of the financial asset depends on the
purpose for which the instruments were acquired.
Financial assets at fair value through surplus or deficit.
Financial assets at fair value through surplus or deficit
include financial assets held for trading. A financial asset
is classified in this category if acquired principally for
the purpose of selling in the short-term or is part of a
portfolio that are managed together and for which there
is evidence of short-term profit-taking.
Computer
software
Course
development
costs
Useful lives
Finite - 5 years Finite - 5 years
Method used Straight line
method
Straight line
method from
capitalisation
Internally
generated/
acquired
Separately
acquired
Internally
generated/
separately
acquired
Statement of accounting policies (continued)
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