Page 117 - Annual Report 2020
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Furniture and equipment Intangible assets Leases
Furniture and equipment are stated at cost, net of Intangible assets include the cost of purchased computer The QFC Regulatory Authority assesses at contract inception
accumulated depreciation and accumulated impairment software and software developed in-house. Intangible whether a contract is, or contains, a lease. That is, if the
losses, if any. assets acquired separately are measured on initial contract conveys the right to control the use of an identified
recognition at cost. Costs associated with the development asset for a period of time in exchange for consideration.
Depreciation is calculated on a straight-line basis over of software for internal use are capitalised only if the
the estimated useful lives of the assets as follows: design of the software is technically feasible, and the QFC
QFC Regulatory Authority as a lessee
Regulatory Authority has both the resources and intent
Furniture and fixtures — 3 years
to complete its development and ability to use it upon
Office equipment — 3 years The QFC Regulatory Authority applies a single
completion. In addition, costs are only capitalised if the
Leasehold improvements — Lower of 3 years recognition and measurement approach for
asset can be separately identified, it is probable that the
or lease period all leases, except for short-term leases and
asset will generate future economic benefits, and that the
leases of low-value assets. The QFC Regulatory
development cost of the asset can be measured reliably.
Expenditure incurred to replace a component of an Authority recognises lease liabilities to make lease
item of furniture and equipment that is accounted payments and right-of-use assets representing
Only costs that are directly attributable to bringing the asset
for separately is capitalised and the carrying amount the right to use the underlying assets.
to working condition for its intended use are included in its
of the component that is replaced is written-off.
measurement. These costs include all directly attributable
Other subsequent expenditure is capitalised only i) Right-of-use assets
costs necessary to create, produce and prepare the asset to be
when it increases future economic benefits of the
capable of operating in a manner intended by management. The QFC Regulatory Authority recognises right-of-use
related item of furniture and equipment. All other
assets at the commencement date of the lease (i.e.,
expenditure is recognised in the statement of
Intangible assets are carried at cost less accumulated the date the underlying asset is available for use).
comprehensive income as the expense is incurred.
amortisation and impairment losses, if any. Those are Right-of-use assets are measured at cost, less any
amortised on a straight-line basis over a period of three accumulated depreciation and impairment losses, and
An item of furniture and equipment is de-recognised
years except for the eXtensible Business Reporting adjusted for any remeasurement of lease liabilities.
upon disposal or when no future economic benefits
Language (XBRL) software and Microsoft Dynamics The cost of right-of-use assets includes the amount
are expected from its use or disposal. Any gain
AX, which is amortised over a period of five years, of lease liabilities recognised, initial direct costs
or loss arising on de-recognition of the asset
commencing when the asset is available for its intended incurred, and lease payments made at or before the
(calculated as the difference between the net
use. This expense is reported as general and administration commencement date less any lease incentives received.
disposal proceeds and the carrying amount of the
expense in the statement of comprehensive income. Right-of-use assets are depreciated on a straight-
asset) is included in the statement of comprehensive
line basis over the shorter of the lease term and the
income in the year the asset is de-recognised.
Subsequent expenditure is only capitalised when it increases estimated useful lives of the assets, as follows:
the future economic benefits embodied in the specific
The residual values, useful lives and methods
asset to which it relates. Where no intangible asset can be Office space — 2 years
of depreciation of furniture and equipment
recognised, development expenditure is charged to the Office equipment — 3 years
are reviewed at each financial year-end and
statement of comprehensive income when incurred. Vehicles — 3 years
adjusted prospectively, if appropriate.
If ownership of the leased asset transfers to the QFC
Expenditure on research or on the research
Regulatory Authority at the end of the lease term or the
phase of an internal project is recognised as an
cost reflects the exercise of a purchase option, depreciation
expense in the period in which it is incurred.
is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment.
T ABLE OF C ONTENT S
