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Masterskill Education Group Berhad / Annual Report 2012<br />
72<br />
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)<br />
2. SIGNIFICANT ACCOuNTING pOlICIES (Cont’d)<br />
(c) property, plant and equipment (Cont’d)<br />
(i) Recognition and measurement (Cont’d)<br />
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.<br />
When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as<br />
separate items (major components) of property, plant and equipment.<br />
The gains or losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds<br />
from disposal with the carrying amount of property, plant and equipment and are recognised net within “other income”<br />
or “other expenses” respectively in profit or loss.<br />
(ii) Subsequent costs<br />
The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount<br />
of the item if it is probable that the future economic benefits embodied within the part will flow to the Group or the<br />
Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognised to profit or<br />
loss. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.<br />
(iii) Depreciation<br />
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are<br />
assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is<br />
depreciated separately.<br />
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item<br />
of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives<br />
unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not<br />
depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their<br />
intended use.<br />
The estimated useful lives for the current and comparative periods are as follows:<br />
Buildings 33 1/3 years<br />
Books 10 years<br />
Motor vehicles 5 years<br />
Furniture and fittings 10 years<br />
Computer, LCD and overhead projectors 2 1/2 years<br />
Renovation and electrical installation 10 years<br />
Office and medical equipment 10 years<br />
Robes 5 years<br />
Depreciation methods, useful lives and residual values are reviewed at the end of the reporting period and adjusted as<br />
appropriate.