In the application of the Company’s accounting policies, which are described in note 2, the directors are
required to make judgements, estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods. Management consider the following to be any key sources of estimation uncertainty or significant
judgement areas.
Development expenditure
Development expenditure is recognised at cost and subsequently amortised over its useful economic life
of 5 to 10 years. Management reconsiders the useful economic life at each balance sheet date and if it
has changed, will prospectively alter the rate at which the Development expenditure is written down. The
expenditure incurred relates to a combination of the core infrstrastructure costs and developing the
underlying architecture to build for scale and growth. There is also a small amount of updates and
improvements made to existing assets. Judgement is applied by management and an element of
estimation uncertainty exists in relation to the allocation of time spent by staff and developers between
core infrastructure and ongoing updates and improvements to existing assets. Management expect the
spend relating to core infrastructure and development to be long lasting, and therefore are amortising the
spend over a longer period than any ongoing updates and improvements which are amortised over a
shorter period. The majority of the spend year on year relates to the core infrastructure spend and is
therefore amortised over a longer period.
Management also consider whether there are any indicators of impairment at the balance sheet date, and
if so, will consider whether the recoverable amount is less than the carrying value. Management have
prepared and reviewed forecasts and anticipate that significant profits will be generated from the asset in
the forseeable future and have therefore not impaired any of the balance.