Page 45 - GTBank Annual Report 2020 eBook

3.8. Property, equipment and right- The cost of replacing part of an item of property
of-use assets or equipment is recognized in the carrying
Recognition and measurement amount of the item if it is probable that the future
The bank recognizes items of property, plant and economic benefits embodied within the part will
equipment at the time the cost is incurred. These flow to the Bank and its cost can be measured
costs include costs incurred initially to acquire or reliably. The carrying amount of the replaced part
construct an item of property and equipment. Its is derecognized. The costs of the day-to- day
cost also includes the costs of its dismantlement, servicing of property and equipment are
removal or restoration, the obligation for which an recognized in the income statement as incurred.
entity incurs as a consequence of using the item
during a particular year. (ii) Depreciation
Items of property and equipment are measured at Depreciation is recognized in the income
cost less accumulated depreciation and statement on a straight-line basis to write down
impairment losses. Cost includes expenditures the cost of each asset, to their residual values
that are directly attributable to the acquisition of over the estimated useful lives of each part of an
the asset. When parts of an item of property or item of property and equipment.
equipment have different useful lives, they are Depreciation begins when an asset is available
accounted for as separate items (major for use and ceases at the earlier of the date that
components) of property and equipment. the asset is derecognized or classified as held for
The assets’ carrying values and useful lives are sale in accordance with IFRS 5. A non-current
reviewed, and written down if appropriate, at each asset or disposal group is not depreciated while it
date of the Statements of financial position. is classified as held for sale.
Assets are impaired whenever events or changes
in circumstances indicate that the carrying
amount is less than the recoverable amount; see (iii) Right-of-use assets
note (s) on impairment of non-financial assets. are depreciated on a
straight-line basis
over the lease term.
(i) Subsequent costs

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.
Annual Report 2020

Guaranty Trust Bank Gambia Limited www.gtbankgambia.com 43