- 6 - 3.7 Property, plant and equipment Land and land improvement is stated at cost less allowance for impairment. Plant and equipment are initially recorded at cost and subsequently stated at historical cost less accumulated depreciation. Costs include directly attributable expenses in acquiring such asset. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are recognised in the statement of profit or loss during the financial period in which they are incurred. Land and land improvement is not depreciated. Depreciation on other assets is calculated on the straight-line method or units of production to allocate their costs to their residual values over their estimated useful life, as follows: Buildings and building improvements 20 - 40 years Machinery and pipes 20 - 30 years Other machinery Unit of production Tools and factory equipment 10 years Furniture, fixtures and office equipment 5 - 10 years Vehicles 5 - 10 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of the reporting period. The asset’s carrying amount is written-down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 3.9). Gains or losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised as other income in the statement of profit or loss. 3.8 Intangible assets Intangible assets are dredging expenses and computer software which are stated at cost less accumulated amortisation and impairment loss. Dredging expenses is expenditure paid to prepare the undersea area around the jetty. Intangible assets of the Group are definite life assets which are amortised on a straight-line basis over the estimated useful lives of the assets. Amortisation is recognised in the statement of profit or loss. Dredging expenses 10 - 20 years Computer software 5 - 10 years 308 IRPC PUBLIC COMPANY LIMITED 56-1 ONE REPORT 2021
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