Crucial 2012 Annual Report Download - page 249

4
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
Depreciation of property, plant and equipment is provided over their estimated useful lives by using the straight-
line method. In accordance with the Interpretation Rule (97) 340 issued by the Accounting Research and
Development Foundation (ARDF), on November 12, 2008, the estimated useful lives, depreciation method
and residual value of these assets are reviewed at least at each financial year-end. Any change in the estimated
useful lives, depreciation method and residual value of these assets is treated as a change in an accounting
estimate. The estimated economic useful lives of the assets are as follows:
(i) Buildings: 8 to 50 years.
(ii) Vehicles: 5 years.
(iii) Machinery and equipment: 3 to 5 years.
(iv) Leased assets: over the lease term
(v) Miscellaneous equipment: 3 to 15 years.
Gains or losses on disposal of property, plant and equipment are recorded as non-operating income or expenses.
(i) Intangible asset - Technical know-how
An intangible asset is measured initially at cost. Subsequent to initial recognition, an intangible asset is measured
at its cost less any accumulated amortization and any accumulated impairment losses.
The amortizable amount of the Company's intangible asset is determined based on its initial cost. Amortization
is recognized as an expense on a straight-line basis over the estimated useful life of an intangible asset of 27
months from the date that it is made available for use. The amortization period and method for an intangible
asset with a finite useful life are reviewed at least at each financial year-end and changes thereon are accounted
for as changes in accounting estimates.