Page 10 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 2. Summary of Significant Accounting Policies (Continued) (d) Property, plant and equipment (continued) Gains and losses on disposal of property, plant and equipment are determined by comparing proceeds with carrying amount and are included in net surplus. Repairs and maintenance expenditure are included in the statement of comprehensive income during the financial period in which they are incurred. The cost of major renovations is included in the carrying amount of the asset when it is probable that the future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the University. (e) Intangible assets Generally, costs associated with developing or maintaining computer software are recorded as an expense as incurred. However, costs that are directly associated with identifiable and unique software products controlled by the University, and which have probable economic benefits exceeding the cost beyond one year, are recorded as intangible assets. The costs of these assets are amortised over their estimated useful lives of three years. (f) Financial instruments Financial assets Classification The University classifies its financial assets in the following measurement categories: • those to be measured subsequently at fair value through profit or loss; and • those to be measured at amortised cost. The classification depends on the business model used for managing the financial assets and the contractual terms of the cash flows. The University reclassifies debt investments only when its business model for managing those assets changes. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, where the fair value gains are recorded will depend on whether the University has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). Equity instruments held for trading are measured at FVPL. University of Technology, Jamaica 126
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