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ANNUAL REPORT 2021 193
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

2. sIGNIfIcANT AccOuNTING POLIcIes (cONT’D.)

2.3 summary of significant accounting policies (cont’d.)
(g) Intangible assets

Intangible assets include computer software and software under development.
An intangible asset is recognised only when its cost can be measured reliably and it is probable that the expected
future economic benefits that are attributable to it will flow to the Group and the Bank. Intangible assets acquired
separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is their fair value as at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation and any accumulated impairment losses, except for software
under development which are not subject to amortisation.
The useful lives of intangible assets are assessed as either finite or infinite. Intangible assets with finite lives are
amortised over the useful economic life. Intangibles with finite lives or not yet available for use are assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation year and
the amortisation method for an intangible asset with a finite useful life 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 intangible asset are accounted for by changing the amortisation year or method, as appropriate
and treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is
recognised in the statements of profit or loss in the expense category consistent with the function of the intangible
asset.

Amortisation of intangible asset is provided for on a straight-line basis over the estimated useful lives of the assets,
as follows:
- Computer software is amortised over its estimated finite useful lives ranging from three (3) to ten (10) years.

(h) Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the
asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the Bank and the cost of the item can be
measured reliably. When significant parts of property, plant and equipment are required to be replaced in intervals,
the Group and the Bank recognise such parts as individual assets with specific useful lives and depreciation
respectively. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the
plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance
costs are recognised in the statements of profit or loss as incurred.
Subsequent to initial recognition, property, plant and equipment are stated at cost less accumulated depreciation
and any accumulated impairment losses.
Freehold land has unlimited useful life and therefore is not depreciated. Work-in-progress property, plant and
equipment are also not depreciated until the assets are ready for their intended use.