Singapore Airlines 2009 Annual Report Download - page 101

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2 Accounting Policies (continued)
(e) Intangible assets (continued)
(ii) Computer software
Computer software acquired separately is measured initially at cost. Following initial acquisition,
computer software is stated at cost less accumulated amortisation and accumulated impairment
losses, if any. These costs are amortised using the straight-line method over their estimated useful
lives of 1 to 5 years and assessed for impairment whenever there is an indication that the computer
software may be impaired. The amortisation period and method are reviewed at least annually.
(iii) Brands, customer relationships and licences
Brands, customer relationships and licences are acquired in a business combination. The useful
lives of some of the brands acquired are estimated to be indefi nite because based on the current
market share of the brands, the management believes there is no foreseeable limit to the period
over which the brands are expected to generate net cash infl ows for the Group. Similarly, for some of
the licences, the useful lives are estimated to be indefi nite. For those brands and licenses with fi nite
lives, they are measured at cost less accumulated amortisation and accumulated impairment losses.
These intangible assets are amortised in the profi t and loss account on a straight-line basis over their
estimated useful lives as follows:
Brands: 17 years
Customer relationships: 5 years
Licences: 14 years
(f) Foreign currencies
The management has determined the currency of the primary economic environment in which the
Company operates i.e., functional currency, to be SGD. Sales prices and major costs of providing goods
and services including major operating expenses are primarily infl uenced by fl uctuations in SGD.
Foreign currency transactions are converted into SGD at exchange rates which approximate bank rates
prevailing at dates of transactions.
All foreign currency monetary assets and liabilities are translated into SGD using year-end exchange rates.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are
translated using the exchange rates as at the dates of the initial transactions. Non-monetary assets and
liabilities measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined.
Gains and losses arising from conversion of monetary assets and liabilities are taken to the profi t and
loss account.