Page 43 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
3. Significant accounting policies, continued
(d)
Property and equipment
(i) Recognition and measurement
Property and equipment are measured at cost less accumulated depreciation and impairment losses (note 3(h)(ii)).
Cost includes expenditures that are directly attributable to the acquisition of property and equipment.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment.
Gains or losses arising from the disposal of property and equipment are reflected in the statement of income, expenses and reserves.
(ii) Subsequent costs
The cost of replacing an item of property and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to NIB and its cost can be reliably measured. The carrying amount of the replaced part is derecognised. The cost of the day- to-day servicing of property and equipment is recognised in the statement of income, expenses and reserves, as incurred.
(iii) Depreciation
Depreciation is recognised in the statement of income, expenses and reserves on a straight-line basis over the estimated useful lives of each part of an item of property and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Land is not depreciated.
The estimated useful lives for the current and comparative periods are as follows:
Building
Furniture & Fixtures Computer Equipment Motor Vehicles
25 years 3-10 years 3-10 years
4 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted, if necessary.
2013 & 2014 ANNUAL REPORT | 39 18