Investor Presentaiton
118
ANNEXURE E - DETAILED ACCOUNTING POLICIES CONTINUED
STANDARD BANK NAMIBIA LIMITED
Annual financial statements 2020
119
Type and initial and subsequent
measurement
Computer software
Costs associated with developing
or maintaining computer
software programmes and the
acquisition of software licences
are generally recognised as an
expense as incurred.
However, direct computer
software development costs that
are clearly associated with an
identifiable and unique system,
which will be controlled by the
company and have a probable
future economic benefit beyond
one year, are recognised as
intangible assets.
Intangible assets are carried at
cost less accumulated
amortisation and accumulated
impairment losses from the date
that the assets are available for
use.
Expenditure subsequently
incurred on computer software is
capitalised only when it increases
the future economic benefits
embodied in the specific asset to
which it relates.
Derecognition
Useful lives, depreciation/amortisation
method or fair value basis
Amortisation is recognised in operating
expenses on a straight line basis at rates
appropriate to the expected lives of the
assets (2 to 15 years) from the date that
the asset is available for use.
Amortisation methods, useful lives and
residual values are reviewed at each
financial year end and adjusted, if
necessary
Impairment
Intangible assets that have an indefinite
useful life are tested annually for impairment
and additionally when an indicator of
impairment exists.
The accounting treatment for impairments
and reversal of impairments for computer
software and other intangible assets is
otherwise the same as for tangible assets.
Non-financial assets are derecognised on disposal or when no future economic benefits are expected from their use or disposal.
The gain or loss on derecognition is recognised in profit or loss and is determined as the difference between the net disposal
proceeds and the carrying amount of the non-financial asset.
7. Properties in possession
Properties in possession are properties acquired by the
company which were previously held as collateral for
underlying lending arrangements that, subsequent to
origination, have defaulted. The properties are initially
recognised at cost and are subsequently measured at the
lower of cost and its net realisable value and are included
in other assets in the statement of financial position.
Any subsequent write-down in the value of the acquired
properties is recognised as an operating expense. Any
subsequent increases in the net realisable value, to the
extent that it does not exceed its original cost, are also
recognised within operating expenses.
8. Equity-linked transactions
Equity-settled share-based payments
The fair values of the equity-settled share-based payments
determined on grant date and accounted for within
operating expenses (staff costs) over the vesting period
with a corresponding increase in the company's share-
based payment reserve. Non-market vesting conditions,
such as the resignation of employees and retrenchment of
staff, are not considered in the valuation but are included in
the estimate of the number of options expected to vest. At
each reporting date, the estimate of the number of options
expected to vest is reassessed and adjusted against
operating expenses and share-based payment reserve over
the remaining vesting period.
On vesting of the equity-settled share-based payments,
amounts previously credited to the share-based payment
reserve are transferred to retained earnings through an
equity transfer. On exercise of the equity-settled share-
based payment, any proceeds received are credited to
share capital and premium.
Cash-settled share-based payments
Cash-settled share-based payments are accounted for as
liabilities at fair value until the date of settlement. The
liability is recognised over the vesting period and is
revalued at every reporting date up to and including the
date of settlement. All changes in the fair value of the
liability are recognised in operating expenses.View entire presentation