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THERME IPG LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
The Company's intellectual property portfolio includes software, engineering and design know-how, research and business intelligence assets, branding content and project delivery methodologies acquired as part of the Group's intellectual property consolidation programme.
Amortisation is charged on a straight-line basis over the estimated useful economic lives of the assets. The directors consider that a reliable estimate of the useful economic life of the intellectual property assets cannot be made and, accordingly, the assets are being amortised over ten years.
At each reporting date the Company assesses whether there are indicators of impairment and recognises an impairment loss where the carrying amount exceeds the recoverable amount.
The directors have considered whether indicators of impairment existed at the reporting date and concluded that no impairment provision was required.
Management exercises judgement in determining useful economic lives, assessing impairment indicators and estimating the future economic benefits expected from the assets.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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