SEC Form 20-IS - iRemit Global Remittance
SEC Form 20-IS - iRemit Global Remittance
SEC Form 20-IS - iRemit Global Remittance
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Expenditures incurred after the property and equipment have been put into operation, such as<br />
repairs and maintenance are normally charged to operations in the year in which the costs are<br />
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in<br />
an increase in the future economic benefits expected to be obtained from the use of an item of<br />
property and equipment beyond its originally assessed standard of performance, the expenditures<br />
are capitalized as an additional cost of property and equipment.<br />
Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of<br />
the property and equipment as follows:<br />
Office and communication equipment 3 years<br />
Transportation and delivery equipment 3 to 5 years<br />
Furniture and fixtures 3 to 5 years<br />
Leasehold improvements 5 years or the term of the lease,<br />
whichever is shorter<br />
The carrying values of property and equipment are reviewed for impairment when events or<br />
changes in circumstances indicate the carrying value may not be recoverable. If any such<br />
indication exists and where the carrying values exceed the estimated recoverable amount, the asset<br />
or CGU are written down to their recoverable amount (see policy on Impairment of Nonfinancial<br />
Assets).<br />
An item of property and equipment is derecognized upon disposal or when no future economic<br />
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the<br />
asset (calculated as the difference between the net disposal proceeds and the carrying amount of<br />
the asset) is included in the consolidated statement of income in the year the asset is derecognized.<br />
The asset’s residual values, useful lives and methods of depreciation and amortization are<br />
reviewed, and adjusted if appropriate, at each financial year-end to ensure that these are consistent<br />
with the expected pattern of economic benefits from the items of property and equipment.<br />
Intangible Assets<br />
Intangible assets acquired separately are measured on initial recognition at cost. Following initial<br />
recognition, intangible assets are carried at cost less any accumulated amortization and any<br />
accumulated impairment losses.<br />
The useful lives of intangible assets are assessed to be either finite or indefinite.<br />
Intangibles assets with finite lives are amortized over the useful economic life and assessed for<br />
impairment whenever there is an indication that the intangible assets may be impaired. The<br />
amortization period and the amortization method for an intangible asset with a finite useful life are<br />
reviewed at least at each balance sheet date. Changes in the expected useful life or the expected<br />
pattern of consumption of future economic benefits embodied in the asset is accounted for by<br />
changing the amortization period or method, as appropriate, and treated as changes in accounting<br />
estimates. The amortization expense on intangible assets with finite lives is recognized in the<br />
consolidated statement of income in the expense category consistent with the function of the<br />
intangible asset. Intangible assets with indefinite useful lives are tested for impairment annually<br />
either individually or at the CGU level. Such intangibles are not amortized. The useful life of an<br />
intangible asset with an indefinite life is reviewed annually to determine whether indefinite life<br />
assessment continues to be supportable. If not, the change in the useful life assessment from<br />
indefinite to finite is made on a prospective basis.<br />
*SGVMC116502*