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Major renewals and improvements i any are capitali ed

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Unformatted text preview: Major renewals and improvements, i any, are capitali ed when it is probable that uture economic bene its wil low to the Ban . Gain / los, i any, on disposal o ixed asets are included in the pro it and los acount. 28 The carying values o property and equipment are reviewed at each reporting date or indication that an aset may be impaired and carying values may not be recovered. I any such indication exists and where the carying values exced the estimated recoverable amount, the asets or cash generating units are writen down to their recoverable amount. The recoverable amount o property and equipment is the greater o net seling price and value in use. Residual values, use ul lives and depreciation methods are reviewed and adjusted, i apropriate, at each inancial year end. 6.5.2 Capital wor -in-progr Al expenditure conected with speci ic asets incured during instalation and construction period are caried under this head. These are trans ered to speci ic asets as and when these asets are available or use. 6.5.3 Intangibl a t An intangible aset is recognised i it is probable that uture economic bene its that are atributable to the aset wil low to the Ban and the cost o such aset can be asesed reliably. These are stated at cost les acumulated amorti ation and impairment, i any. Amorti ation is based on straight line method by ta ing into consideration the estimated use ul li e o respective asets. Amorti ation on aditions and deletions during the year is charged or the proportionate period or which the aset remained in use. 6.6 Taxation 6.6.1 Cur nt taxation Provision or curent taxation is based on taxable income at the curent rates o taxation a ter ta ing into acount tax credits and rebates available, i any. 6.6.2 D f r d taxation De ered income tax is provided, using the liability method, on al temporary di erences at the balance shet date betwen the tax bases o asets and liabilities and their carying amounts or inancial reporting purposes. De ered tax liabilities are recognised or al taxable temporary di erences. De ered tax asets are recognised or al deductible temporary di erences and un-absorbed tax loses to the extent that it is probable that taxable pro it wil be available against which the deductible temporary di erences and un-absorbed tax loses can be utilised. De ered tax asets and liabilities are measured at the tax rates that are expected to aply to the period when the aset is realised or the liability is setled, based on the tax rates (and tax laws) that have ben enacted or subsequently enacted at the balance shet date. De ered tax on surplus / de icit on revaluation o asets, i any, is charged or credited directly to the same acount. The carying amount o de ered tax asets is reviewed at each balance shet date and reduced to the extent that it is no longer probable that su icient taxable pro it wil be available to alow al or part o the de ered tax aset to be utilised....
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Major renewals and improvements i any are capitali ed when...

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