Page 46 - GTBANK GAMBIA ANNUAL REPORT 2021

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 difference between the net disposal
proceeds and the carrying amount of the asset) is included in the income statement in the year the asset is derecognized.

3.9. Intangible assets depreciated cost less any accumulated impairment
losses.
Software An impairment loss is recognized if the carrying amount
of an asset or its cash-generating unit exceeds its
Software acquired by the Bank is stated at cost less recoverable amount. A cash-generating unit is the
accumulated amortization and accumulated impairment smallest identifiable asset Bank that generates cash flows
losses. that largely are independent from other assets and Banks.
Expenditure on internally developed software is Impairment losses are recognized in the income
recognized as an asset when the Bank is able to statement. Impairment losses recognized in respect of
demonstrate its intention and ability to complete the cash-generating units are allocated first to reduce the
development and use the software in a manner that will carrying amount of any goodwill allocated to the units and
generate future economic benefits, and can reliably then to reduce the carrying amount of the other assets in
measure the costs to complete the development. the unit (group of units) on a pro rata basis.
Development costs previously expensed cannot be The recoverable amount of an asset or cash-generating
capitalized. The capitalized costs of internally developed unit is the greater of its value in use and its fair value less
software include all costs directly attributable to costs to sell. In assessing value in use, the estimated
developing the software and capitalized borrowing costs, future cash flows are discounted to their present value
and are amortized over its useful life. Internally developed using a pre-tax discount rate that reflects current market
software is stated at capitalized cost less accumulated assessments of the time value of money and the risks
amortization and impairment. There was no such specific to the asset.
expenditure during the year. Subsequent expenditure on An impairment loss in respect of goodwill is not reversed.
software assets is capitalized only when it increases the In respect of other assets, impairment losses recognized
future economic benefits embodied in the specific asset in prior years are assessed at each reporting date for any
to which it relates. All other expenditure is expensed as indications that the loss has decreased or no longer
incurred. Amortization is recognized in profit or loss on a exists. An impairment loss is reversed if there has been a
straight-line basis over the estimated useful life of the change in the estimates used to determine the
software, from the date that it is available for use since recoverable amount. An impairment loss is reversed only
this most closely reflects the expected pattern of to the extent that the asset’s carrying amount does not
consumption of the future economic benefits embodied in exceed the carrying amount that would have been
the asset. The maximum useful life of software is five determined, net of depreciation or amortization, if no
years. impairment loss had been recognized.
Amortization methods, useful lives and residual values
are reviewed at each financial year-end and adjusted if 3.11. Deposits
appropriate.
Deposits are initially measured at fair value plus
3.10. Impairment of non-financial assets transaction costs, and subsequently measured at their
amortized cost using the effective interest method, except
The carrying amounts of the Bank’s non-financial assets where the Bank chooses to carry the liabilities at fair value
are reviewed at each reporting date to determine whether through profit or loss.
there is any indication of impairment. If any such
indication exists then the asset’s recoverable amount is 3.12. Provisions
estimated. For goodwill and intangible assets that have
indefinite useful lives or that are available for use, the A provision is recognized if, as a result of a past event, the
recoverable amount is estimated each year. However, the Bank has a present legal or constructive obligation that
Bank chooses the cost model measurement to reassess can be estimated reliably, and it is probable that an
investment property after initial recognition i.e. outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the
Annual Report 2021

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