Page 130 - Annual Report 2016 EN

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[15] SIGNIFICANT ASSUMPTIONS,
ESTIMATES AND JUDGEMENTS

The preparation of the Regulatory Authority’s financial state-
ments 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 signifi-
cant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are described
below.
Useful lives of furniture and equipment
The Regulatory Authority’s management determines the estimated
useful lives of its furniture and equipment for calculating depreci-
ation. The estimate is determined after considering the expected
usage of the 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 calculat-
ing amortisation. The estimate is determined after considering the
expected usage of the intangible asset or technological obsoles-
cence. Management reviews the useful lives annually and future
amortization charge would be adjusted where the management
believes the useful lives differ from previous estimates.