Dimaano, Mario M.
2A11
PPE Disclosures
Company-Apollo Global Holdings
Property and Equipment Property and equipment consist of office furniture, fixtures,
equipment and transportation vehicle that are stated at cost less accumulated
depreciation and any accumulated impairment in value. The initial cost of property and
equipment comprises its purchase price, including import duties and nonrefundable
purchase taxes and any directly attributable costs of bringing the property and
equipment to its working condition and location for its intended use. Expenditures
incurred after the property and equipment have been put into operations, such as
repairs and maintenance, are normally charged to expense in the period the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have
resulted in an increase in the future economic benefits expected to be obtained from the
use of an item of property and equipment beyond its originally assessed standard of
performance, the expenditures are capitalized as an additional cost of property and
equipment.
- 12 - Each part of an item of property and equipment with a cost that is significant in
relation to the total cost of the item is depreciated separately. Depreciation is computed
using the straight-line method over 3-5 years. The estimated useful lives and
depreciation method are reviewed periodically to ensure that the periods and methods
of depreciation are consistent with the expected pattern of economic benefits from items
of property and equipment. When assets are retired or otherwise disposed of, both the
cost and related accumulated depreciation are removed from the accounts and any
resulting gain or loss is recognized in profit or loss. Fully-depreciated assets are
retained as property and equipment until these are no longer in use. Website Cost The
Group’s website is determined to have an indefinite useful life because considering all
of the relevant factors, there is no foreseeable limit to the period over which the asset is
expected to generate cash inflows for the Group. The useful life of an intangible asset is
assessed as indefinite if it is expected to contribute net cash inflows indefinitely and is
reviewed annually to determine whether the indefinite life assessment continues to be
supportable. If not, the change in the useful life assessment from indefinite to finite is
made on a prospective basis. Website cost is not amortized but is tested for impairment
annually either individually or at the cash generating unit level.
Impairment of Nonfinancial Assets, The Group assesses at each reporting date
whether there is an indication that nonfinancial assets may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group
estimates the recoverable amount of these nonfinancial assets. An asset’s recoverable
amount is the higher of an asset’s or cash generating units’ (CGU) fair value less costs
of disposal and its value in use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other
assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value using a discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, an appropriate valuation model is used.
Impairment losses are recognized in the consolidated statement of comprehensive
income. An assessment is made for nonfinancial assets at each reporting date to
determine whether there is any indication that previously recognized impairment losses
may no longer exist or may have decreased. If such indication exists, the Group makes
an estimate of recoverable amount. Any previously recognized impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s
recoverable amount since the last impairment loss was recognized. If that is the case,
the carrying amount of the asset is increased to its recoverable amount. That increased
amount cannot exceed the carrying amount that would have been determined, net of
depreciation and amortization, had no impairment loss been recognized for the asset in
prior years. Such reversal is recognized in the consolidated statement of
comprehensive income.
