Research and development costs
Expenditure on research activities is recognised within profit or loss as an expense is incurred.
Purchased intangible assets consist of licences
Purchased intangible assets are initially recognised at cost. After recognition, intangible assets are measured at cost less any accumulated amortisation and impairment losses.
All intangible assets are considered to have a finite useful life. The useful life of an intangible asset that arises from contractual or other legal rights does not exceed the period of the contractual or other legal rights, but may
be shorter depending on the period over which the entity expects to use the asset.
The estimated useful lives are as follows:
Licences – 5 years on a straight line basis
At each reporting date the company assesses whether there is any indication of impairment. If such indications exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. Any impairment loss is recognised immediately as an expense within profit or loss.