Interfront 2023 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2023 103 FINANCIAL INFORMATION PART Summary of Significant Accounting Policies 1.2 Significant judgements and sources of estimation uncertainty (continued) Allowance for doubtful debts An impairment loss is recognised in surplus and deficit when there is objective evidence that debtors are impaired. The impairment is measured as the difference between the carrying amount of debtors and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition. Intangible assets The entity assesses at each reporting period whether there is any indication that the cash‑generating intangible assets may be impaired. This assessment requires management to make assumptions, and it is reasonably possible that these assumptions may change, which may then impact our estimations and may then require material adjustment to the carrying value of the intangible asset. 1.3 Property, plant and equipment The cost of an item of property, plant and equipment is recognised as an asset when: • it is probable that future economic benefits or service potential associated with the item will flow to the entity; and • the cost of the item can be measured reliably. Property, plant and equipment are initially measured at cost. The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost. Property, plant and equipment are depreciated on the straight‑line basis over their expected useful lives to their estimated residual value. Property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses.