Page 82 - Statement of Intent 2015/16

Other intangibles
Other intangible assets acquired by Waikato DHB are stated at cost less accumulated amortisation and impairment losses.
Subsequent costs
Subsequent costs on intangible assets is capitalised only when it increases the service potential or future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in the statement of comprehensive income as an expense incurred.
Amortisation
Amortisation is charged to the statement of comprehensive income on a straight-line basis over the estimated useful lives of intangible assets unless such lives are indefinite. Intangible assets with an indefinite useful life are tested for impairment at each balance date. Other intangible assets are amortised from the date they are available for use. The estimated useful lives are as follows:
Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Cost is based on weighted average cost. Work in progress includes the cost of direct materials, direct labour and an appropriate share of overheads.
Inventories held for distribution
Inventories held for distribution are stated at the lower of cost and current replacement cost.
Impairment
The carrying amounts of assets other than investment property, inventories and inventories held for distribution are reviewed at each balance date to determine whether there is any
Type of asset
Estimated life
Amortisation rate
Software
1 to 10 years
10 – 100%
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