Interfront 2025 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2025 141 FINANCIAL INFORMATION 1.4 Intangible assets An intangible asset is recognised when: • it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the entity; and • the cost or fair value of the asset can be measured reliably. Intangible assets are carried at cost less any accumulated amortisation and any impairment losses. An intangible asset is initially recognised at cost and subsequently carried at cost less any accumulated amortisation and any impairment losses. The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date. Amortisation is provided to write down the intangible assets with finite useful lives, on a straight‑line basis, over their estimated useful lives to their residual values as follows: ITEM DEPRECIATION METHOD AVERAGE USEFUL LIFE Intellectual property rights Straight‑line 11 years IT software Straight‑line 3–5 years Intangible assets are derecognised: • on disposal; or • when no future economic benefits or service potential are expected from its use or disposal. 1.5 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity. The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility. Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Derecognition is the removal of a previously recognised financial asset or financial liability from an entity’s statement of financial position. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.