3.11 Property and equipment
Property and equipment is stated at cost excluding the costs of day–to–day servicing, less accumulated depreciation and accumulated impairment in value. Changes in the expected useful life are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates.
Depreciation is calculated using the straight–line method to write down the cost of property and equipment to their residual values over their estimated useful lives. Land is not depreciated. The estimated useful lives are as follows:
| | | Useful life in Years |
| Furniture and equipment | | 3 to 5 years |
| Hardware | | 3 years |
| Other Equipments | | 2 to 4 years |
| Leasehold improvements | | 3 to 15 years or up to the lease term |
Improvements to leased properties, under operating leases are amortized on a straight line calculated without exceeding the length of the respective lease contracts.
Property and equipment is derecognized on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in other income or other expenses in the consolidated statement of profit or loss in the year that the asset is derecognized.
