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Useful lives of property, plant and equipment
The Regulatory Authority’s management determines
the estimated useful lives of its furniture and equipment for calculating depreciation. The estimate is determined after considering the expected usage of asset or physical wear and tear. Management reviews the residual value and useful lives annually and future depreciation charge would be adjusted where the management believes the useful lives differ from previous estimates.
Useful lives of intangible assets
The Regulatory Authority’s management determines the estimated useful lives of its intangible assets with finite life time for calculating amortisation. The estimate is determined
after considering the expected usage of intangible asset or technological obsolescence. Management reviews the
useful lives annually and future amortization charge would be adjusted where the management believes the useful lives differ from previous estimates.
Impairment of financial assets
An estimate of the collectible amount of financial assets is made when collection of the full amount is no longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are not individually significant, but which are past due, are assessed collectively and an allowance is applied according to the length of time past due, based on historical recovery rates.
At end of reporting period, financial assets were USD
249 thousand (2014: USD 155 thousand) with no allowance for impairment (2014: USD 83 thousand). Any difference between the amounts actually collected in future periods and the amounts expected will be
recognised in the statement of comprehensive income.
Going concern
The Regulatory Authority’s management has made an assessment of the Regulatory Authority’s ability to continue
as a going concern and is satisfied that the Regulatory Authority has the resources
to continue in business for the foreseeable future. Furthermore, the management is not aware of any material uncertainties that may cast significant doubt upon the Regulatory Authority’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on a going concern basis.
16. Comparative figures
Certain comparative figures have been reclassified to conform to the presentation in the current year’s financial statements. Such reclassification did not have
any impact on the previously reported comprehensive income or total equity.
14. Fair values of financial instruments
Financial instruments include financial assets and liabilities.
The Regulatory Authority does not have any financial assets
or financial liabilities which are measured at fair value. The fair values of financial instruments are not materially different from their carrying values.
15. Significant assumptions, estimates and judgements
The preparation of the Regulatory Authority’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts recognised
in the financial statements and certain disclosures. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment
to the carrying amount of the asset or liability affected in future periods.
The key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
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