Useful life limits for assets require disclosure when varied and prescribe a toll road amortisation method. Amendment to Schedule II limits asset useful life to the lives specified in Part 'C' and residual value to no more than five percent of original cost, requiring disclosure where companies use different estimates. Intangible assets generally follow applicable accounting standards, but toll road concession intangibles may be amortised by allocating cost over projected concession revenues using the formula: Amortisation Amount = Cost x (Actual Revenue for the Year / Projected Revenue over Concession), with annual review and adjustment of projections so cost is fully amortised over the concession. Part 'C' also prescribes 25 years for continuous process plants where no special rate applies.
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Provisions expressly mentioned in the judgment/order text.
Useful life limits for assets require disclosure when varied and prescribe a toll road amortisation method.
Amendment to Schedule II limits asset useful life to the lives specified in Part 'C' and residual value to no more than five percent of original cost, requiring disclosure where companies use different estimates. Intangible assets generally follow applicable accounting standards, but toll road concession intangibles may be amortised by allocating cost over projected concession revenues using the formula: Amortisation Amount = Cost x (Actual Revenue for the Year / Projected Revenue over Concession), with annual review and adjustment of projections so cost is fully amortised over the concession. Part 'C' also prescribes 25 years for continuous process plants where no special rate applies.
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