GSK_Annual_Report_2021

Notes to the Standalone Financial Statements for the year ended March 31, 2021 (contd.) Annual Report 2020-21 101 • Factory Buildings 30 to 50 years • Other Buildings 60 years • Plant and Equipment 10 to 15 years • Personal Computers and Laptops 3 to 5 years • Other Computer Equipment 4 years • Furniture and Fixtures 10 years • Office Equipment 5 years • Vehicles 5 years Depreciation is provided pro-rata for the number of months available for use. Depreciation on sale / disposal of assets is provided pro-rata up to the end of the month of sale / disposal. An asset purchased where the actual cost does not exceed ` 5,000 is depreciated at the rate of 100%. Leasehold building, leasehold land and leasehold improvements are amortised over the period of the lease. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are recognised as income or expense in the statement of profit and loss. Cost of items of property, plant and equipment not ready for intended use as on the balance sheet date is disclosed as capital work-in-progress. Advances given towards acquisition of property, plant and equipment outstanding at each balance sheet date are disclosed as capital advance under other non-current assets. An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. d) Intangible assets Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation / depletion and impairment loss, if any. The cost comprises of purchase price, borrowing costs and any cost directly attributable to bringing the asset to its working condition for the intended use. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are recognised as income or expense in the statement of profit and loss. Cost of items of intangible assets not ready for intended use as on the balance sheet date are disclosed as intangible assets under development. Amortisation method and periods Amortisation is charged on a straight-line basis over the estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each annual reporting period, with the effect of any changes in the estimate being accounted for on a prospective basis.