Page 154 - KWAP_AR2022

152 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER REtURNS

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.5 Intangible Assets (continued)

gains or losses arising from the derecognition of intangible assets are measured as the difference between
the net disposal proceeds and the carrying amount of the assets and are recognised in profit or loss upon
derecognition.

depreciation of intangible assets with finite useful lives is provided for on a straight-line basis where the cost of
the asset is written off to its residual value based on the following rate:

computer software and licenses 33.33%
2.6 Property And Equipment

property and equipment are initially measured at cost, net of tax, except where the amount of tax incurred is not
recoverable from the government. in the event the amount of tax incurred is not recoverable from the government,
the tax is recognised as part of the cost of acquisition of the property and equipment. the cost of an item of
property and equipment is recognised as an asset if, and only if, it is probable that the future economic benefits
associated with the item will flow to the group and KWap and the cost of the item can be reliably measured.
subsequent to the initial recognition, property and equipment are stated at historical cost less accumulated
depreciation and accumulated impairment losses, if any. the cost of an item of property and equipment initially
recognised includes its purchase price and any cost that is directly attributable to the bringing of the asset to
the location and condition necessary for it to be capable of operating in the manner intended by the group or
KWap. the cost also includes borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset.
in the event of a requirement for the replacement of significant parts of the property and equipment in intervals,
such parts are recognised as individual assets with specific useful lives and depreciation, respectively. likewise,
in the event of a major inspection, the replacement cost is recognised in the carrying amount of the property
and equipment subject to the fulfilment of the recognition criteria. all other costs of repair and maintenance are
recognised in profit or loss as incurred.

depreciation of property and equipment is provided for on a straight-line basis where the cost of each asset is
written off to its residual value based on the following rates:

office renovation 16.67%
computers 20.00%
paintings 20.00%
office furniture and equipment 20.00%
gymnasium equipment 20.00%
Vehicles 20.00%
electronic equipment 33.33%