SEC Form 20-IS - iRemit Global Remittance

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Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of
the property and equipment as follows:
Office and communication equipment 3 years
Transportation and delivery equipment 3 to 5 years
Furniture and fixtures 3 to 5 years
Leasehold improvements 5 years or the term of the lease,
whichever is shorter
The carrying values of property and equipment are reviewed for impairment when events or
changes in circumstances indicate the carrying value may not be recoverable. If any such
indication exists and where the carrying values exceed the estimated recoverable amount, the asset
or cash-generating units (CGU) are written down to their recoverable amount (see policy on
Impairment of Nonfinancial Assets).
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is included in the parent company statement of income in the year the asset is
derecognized.
The asset’s residual values, useful lives and methods of depreciation and amortization are
reviewed, and adjusted if appropriate, at each financial year-end to ensure that these are consistent
with the expected pattern of economic benefits from the items of property and equipment.
Software costs
Software costs are carried at cost less accumulated amortization and any impairment in value. The
cost of the asset is the amount of cash or cash equivalents paid or the fair value of the other
considerations given up to acquire the asset at the time of its acquisition or production. Software
costs are amortized on a straight-line basis over its estimated useful life of three (3) years.
The asset’s amortization period and amortization method are reviewed at least at each balance
sheet date. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset is accounted for by changing the amortization period or
method, as appropriate, and treated as changes in accounting estimates.
Impairment of Nonfinancial assets
Investments in subsidiaries and associates
The Parent Company assesses at each balance sheet date whether there is any indication that its
investments in subsidiaries and associates may be impaired. If any indication exists, the Parent
Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset’s or CGU’s fair value less cost to sell and its value in use. Where the carrying amount
of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
Property and equipment and software costs
At each balance sheet date, the Parent Company assesses whether there is any indication that its
property and equipment and software costs may be impaired. When an indicator of impairment
exists or when an annual impairment testing for an asset is required, the Parent Company makes a
formal estimate of recoverable amount. Recoverable amount is the higher of an asset’s (or
CGU’s) fair value less costs to sell and its value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other
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