RCS GROUP CONSOLIDATED FINANCIAL STATEMENTS
1.10 Intangible Assets (continued)
Client lists (continued)
Amortisation is recognised in the income statement on a
straight-line basis over the estimated useful lives of the client
lists. The annual rate for the amortisation is 20%.
Computer software acquired by the RCS Group is stated at
historical cost less accumulated amortisation and impairment
losses. Amortisation is recognised in the income statement
on a straight-line basis over the estimated useful lives of
intangible assets. The annual rate for the amortisation is 33%.
The above amortisation rates are consistent with the
comparative period. Amortisation methods, useful lives and
residual values are reassessed at each reporting date.
Non-derivative financial assets
A financial asset not classified as at fair value through profit or
loss is assessed at each reporting date to determine whether
there is any objective evidence that it is impaired. A financial
asset is considered to be impaired if objective evidence
indicates that one or more events have had a negative effect
on the estimated future cash flows of that asset, that can be
An impairment loss in respect of a financial asset measured
at amortised cost is calculated as the difference between its
carrying amount and the present value of the estimated future
cash flows discounted at the original effective interest rate.
Individually significant financial assets are tested for
impairment on an individual basis. Those found not to be
specifically impaired are then collectively assessed for any
impairment that has been incurred but not yet identified.
Assets that are not individually significant are collectively
assessed for impairment by grouping together assets with
similar credit risk characteristics.
All impairment losses are recognised in the income statement.
An impairment loss is reversed if the reversal can be related
objectively to an event occurring after the impairment loss
was recognised. For financial assets measured at amortised
cost the reversal is recognised in the income statement.
The carrying values of the RCS Group’s non-financial
assets, other than deferred tax assets, are reviewed at each
reporting date to determine whether there is any indication
of impairment. If any such indication exists then the asset’s
recoverable amount is estimated. For goodwill and intangible
assets that have indefinite useful lives or that are not yet
available for use, the recoverable amount is estimated at each
An impairment loss is recognised if the carrying amount of
an asset or its cash-generating unit exceeds its recoverable
amount. A cash-generating unit is the smallest identifiable
asset group that generates cash flows that are largely
independent fromother assets and groups. Impairment losses
are recognised in the income statement. Impairment losses
recognised in respect of cash-generating units are allocated
first to goodwill and then to reduce the carrying amount of the
other assets in the unit (group of units) on a pro rata basis.
The recoverable amount of an asset or cash-generating unit
is the greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset.
An impairment loss in respect of goodwill is not reversed. In
respect of other assets, impairment losses recognised in prior
periods are assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An impairment
loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset’s carrying
for the period ended 31 December 2015