Page 40 - Agib Bank Limited Annual Report 2021
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market-observable data to the extent it is Subsequent expenditure on software assets is
available. Where such Level 1 inputs are not capitalised only when it increases the future
available the Bank uses valuation models to economic benefits embodied in the specific
determine the fair value of its financial asset to which it relates. All other expenditure
instruments is expensed as incurred.
4.17 Property, plant and equipment Amortisation is recognised in profit or loss on a
straight-line basis over the estimated useful life
(i) Recognition and of the software, from the date that it is available
measurement for use. The estimated useful life of software is
three to five years.
Items of property and equipment are
measured at cost less accumulated 4.19 Personnel Expenses
depreciation and impairment losses.
(i) Defined contribution plans
(ii) Depreciation The Bank operates a defined contribution plan
for all employees. Under the plan, fixed
Depreciation is recognised in profit or loss on contributions are paid into a separate entity and
a straight-line basis over the estimated useful the Bank will have no legal or constructive
lives of each item of property, plant and obligation to pay further amounts. Obligations
equipment. Leased assets are depreciated for contributions to defined contribution
over the shorter of the lease term and their pension plans are recognised as an employee
useful lives. Land is not depreciated. benefit expense in profit or loss in the periods
during which services are rendered by
The estimated useful lives for the current and employees. Prepaid contributions are
comparative periods are as follows: recognised as an asset to the extent that a
cash refund or a reduction in future payments
Buildings 10% is available.
Furniture and equipment 20%
Motor Vehicle 25% (ii) Short-term benefits
Short-term employee benefit obligations are
Depreciation methods, useful lives and residual measured on an undiscounted basis and are
values are reassessed at each reporting expensed as the related service is provided.
date.
A provision is recognised for the amount
4.18 Intangible assets expected to be paid under short-term cash
bonus or profit-sharing plans if the Bank has a
An Intangible asset is generally considered as
an identifiable non-monetary asset without present legal or constructive obligation to pay
physical substance. It is distinguished from this amount as a result of past service provided
goodwill based on the identifiability concept. It by the employee and the obligation can be
is recognised when future economic benefits estimated reliably.
will flow to the Bank and it can be reliably
measured. The useful life may be finite or
indefinite depending on the nature and legal 4.20 Share capital and reserves
framework underpinning the transaction. The Bank classifies capital instruments as
Impairment assessment is made of all financial liabilities or equity instruments in
indefinite intangibles at each reporting date and accordance
the appropriate adjustments made. with the substance of the contractual terms of
the instrument.
(i) Software Annual Report and IFRS Financial Statements
Software acquired by the Bank is stated at cost (i) Share issue costs
less accumulated amortisation and Incremental costs directly attributable to the
accumulated impairment losses. issue of an equity instrument are deducted
from the initial measurement of the equity
instruments.
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