RWS AR 23 Final Single pages - Flipbook - Page 134
Notes to the Consolidated Financial Statements (continued)
13. INTANGIBLE ASSETS
Accounting policy
Intangible assets are carried at cost less accumulated amortisation and impairment losses. Intangible assets acquired
from a business combination are initially recognised at fair value. An intangible asset acquired as part of a business
combination is recognised outside goodwill if the asset is separable or arises from contractual or other legal rights.
Where computer software is not an integral part of a related item of computer hardware, the software is classi昀椀ed as
an intangible asset. The capitalised costs of software for internal use include external direct costs of materials and
services consumed in developing or obtaining the software, and directly attributable payroll and payroll-related costs
arising from the assignment of employees to implementation projects. Capitalisation of these costs ceases when the
software is substantially complete and ready for its intended internal use.
Other intangible assets are amortised using the straight-line method over their estimated useful lives as follows:
Trade names
5 to 8 years
Clinician database
10 years
Supplier database
13 years
Technology
3 to 7 years
Non-compete clauses
5 years
Trademarks
5 years
Client relationships
7 to 20 years
Acquired computer software licences are capitalised on
the basis of the costs incurred to acquire and bring to
use the speci昀椀c software. These assets are amortised
using the straight-line method over their estimated
useful lives which range from one to 昀椀ve years, these
costs are recognised in administrative expenses within
the consolidated statement of comprehensive income.
Research and development
Research costs are expensed as incurred. Development expenditure is capitalised when Management is satis昀椀ed
that the expenditure being incurred meets the recognition criteria from IAS 38. Speci昀椀cally, this is at the point which
Management believe they can demonstrate:
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The technical feasibility of completing the asset
The intention to complete the asset for use or sale
The ability to use or sell the asset
The future bene昀椀ts expected to be realised from the sale or use of the asset
The availability of su昀케cient resources to enable completion of the asset
Reliable measurement for the costs incurred during the course of development
Where these criteria are not met the expenditure is expensed to the income statement. Following the initial capitalisation
of the development expenditure the cost model is applied, requiring the asset to be carried at cost less any accumulated
amortisation and impairment losses. Any expenditure capitalised is amortised over the period of expected future economic
bene昀椀t from the related project. For capitalised development costs this period is 3 to 7 years.
The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use or more
frequently when an indicator of impairment arises during the reporting period indicating that the carrying value may
not be recoverable.
Development costs that are subject to amortisation are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
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RWS Holdings plc — Annual Report 2023 NOTES TO THE CONSOLIDATED STATEMENTS
