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ISHINE CLOUD LIMITED
(A company limited by guarantee)
NOTES TO FINANCIAL STATEMENTS March 31, 2019
INTANGIBLE ASSETS - Intangible assets acquired separately are reported at cost less accumulated amortisation and accumulated impairment losses. Intangible assets with nite useful lives are amortised on a straight-line basis over their estimated useful lives, on the following basis:
Capitalised software development - 5 years
The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible asset with inde nite useful lives are not amortised. Each period, the useful lives of such assets are reviewed to determine whether events and circumstances continue to support an inde nite useful life assessment for the asset. Intangible assets are tested for impairment in accordance with the policy below.
IMPAIRMENT OF NON-FINANCIAL ASSETS - At the end of each reporting period, the company reviews
the carrying amounts of the non- nancial assets to determine whether there is any indication that these assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash ows are discounted to their present value using a pre-tax discount rate that re ects current market assessments of the time value of money and the risks speci c to the asset for which the estimates of future cash ows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in pro t or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in pro t or loss.
PROVISIONS - Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash ows estimated to settle the present obligation, its carrying amount is the present value of those cash ows.
DEFERRED GRANT INCOME - This comprises the Care & Share Grant received from National Council of Social Services (“NCSS”) for the funding of IT setup expenditure. Grants received is recognised as deferred grant income in the statement of nancial position and transferred to pro t or loss over the periods and in proportion to the depreciation and amortisation expense recognised on these assets.
iShine Cloud | ANNUAL REPORT 2018–2019 FS13