## (iii) Depreciation 

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. 

Items of property and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use. 

The estimated useful lives for the current and comparative year are as follows: 

• office equipment 3-10 years 

• leasehold improvements 3-10 years 

• equipment under finance lease 3-10 years 

Depreciation methods, useful lives and residual values are reviewed at each reporting date, and adjusted if appropriate. 

## (f) Intangible assets 

## (i) Goodwill 

Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For the measurement of goodwill at initial recognition, see note 3(a)(i) Business combinations. 

## Subsequent measurement 

Goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted investees, the carrying amount of goodwill is included in the carrying amount the investment, and any impairment loss is allocated to the carrying amount of the equity accounted investee as a whole. 

## (ii) Other intangible assets 

Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses. 

## (iii) Subsequent expenditure 

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred. 

## (iv) Amortisation 

Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The 

estimated useful lives for the current and comparative years are as follows: 

• adviser relationships 5 - 10 years 

• computer software 2½ - 4 years 

• customer relationships 10 - 20 years 

• brand names 20 years 

• contract agreements 9 - 10 years 

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. 

## (g) Leased assets 

Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. 

Other leases are operating leases and are not recognised in the Group’s statement of financial position. 

## (h) Impairment 

## (i) Non-derivative financial assets 

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. 

Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers in the Group, economic conditions that correlate with defaults or the disappearance of an active market of a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. 

## Financial assets measured at amortised cost 

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected as an allowance account against loans and receivables. Interest 

