Interfront 2024 Annual Report

INTERFRONT ANNUAL REPORT 2024 International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2024 1.2 Significant judgements and sources of estimation uncertainty (continued) 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 is 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 is carried at cost less accumulated depreciation and any impairment losses. The useful lives of items of property, plant and equipment have been assessed as follows: ITEM DEPRECIATION METHOD AVERAGE USEFUL LIFE Furniture and fixtures Straight‑line 5–16 years IT equipment Straight‑line 3–13 years Leasehold improvements Straight‑line Over the life of the asset or lease period, whichever is shorter Security equipment Straight‑line 13 years Office equipment – leased Straight‑line Over the term of the lease At each reporting date the entity assesses whether there is any indication that the entity’s expectations about the residual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the entity revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an accounting estimate.