Ratchaburi Electricity Generating Holding PCL.
145
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
24
Depreciation
Depreciation is calculated based on the depreciable amount, which is the cost of an asset, or other
amount substituted for cost, less its residual value.
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each
component of an item of property, plant and equipment. The estimated useful lives are as follows:
Power plant, substations and transmission system
8-25 years
Equipment for gas turbine power plant
4-25 years
Operating and maintenance equipment and
equipment for wind power plant
5 years
Buildings and structures
20-40 years
Building improvements
5 years
Furniture, fixtures and office equipment
5 years
Vehicles
5 years
No depreciation is provided on freehold land or assets under construction.
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and
adjusted if appropriate.
(i) Intangible assets
Goodwill
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. The
measurement of goodwill at initial recognition is described in note 4(a). Subsequent to initial
recognition, goodwill is measured at cost less accumulated impairment losses.
Other intangible assets
Other intangible assets that are acquired by the Group/Company and have finite useful lives are
measured at cost less accumulated amortization and accumulated impairment losses.
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.
Amortization
Amortisation is calculated over the cost of the asset, or other amount substituted for cost, less its
residual value.
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, since this most
closely reflects the expected pattern of consumption of the future economic benefits embodied in the
asset. The estimated useful lives for the current and comparative periods are as follows:
Software licences
3-10 years
Right to use electrical transmission line
8 years
Right to Power Purchase Agreements
20-25 years
Notes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
