Page 60 - 2021 ANNUAL REPORT draft

Depreciation is recognized in the income statement on a straight-line basis to write down the cost of each
asset, to their residual values over the estimated useful lives of each part of an item of property and
equipment.
Depreciation begins when an asset is available for use and ceases at the earlier of the date that the asset
is derecognized or classified as held for sale in accordance with IFRS 5. A non-current asset or disposal
group is not depreciated while it is classified as held for sale.

(iv) Right-of-use assets are depreciated on a straight-line basis over the lease term.

The estimated useful lives for the current and comparative years are as follows:

Item of Property, Plant and Estimated Useful Life
Equipment

Leasehold improvements 50 years

Machinery and Equipment 5 years

Buildings 20 years

Land Over the remaining life of the lease

Furniture and Fittings 5 years

Computer hardware 3 years

Motor vehicles 4 years

Capital work in progress is not depreciated. Upon completion it is transferred to the relevant asset category.
Depreciation methods, useful lives and residual values are reassessed at each reporting date.

(v) Derecognition

An item of property and equipment is derecognized on disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the

60 | P a g e
Guaranty Trust Bank (Gambia) Limited Financial Statements December 2021