SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Depreciation and Amortization, Policy (Policies)

6 Months Ended

Feb. 28, 2023

Policies

Depreciation and Amortization, Policy

Depreciation and Amortization

Depreciation is applied to all tangible fixed assets in accordance with the useful life of the type of asset, using the straight line method, for the following types of assets:

·Land and buildings - 40 years 

·Plant and equipment - 3 years 

·Motor vehicles - 3 years 

·Leasehold improvements - based on the length of the lease 

Amortization is applied to non-tangible assets in accordance with the useful life of the type of asset, using the straight line method, for the following types of assets:

·Software - 5 years 

Goodwill is not amortized but is tested for impairment at the end of each financial year to assess the carrying value. If the carrying value is higher than the asset balance, then no impairment is charged to amortization. If the carrying value is lower than the asset balance then an impairment charge is made to amortization for the difference between the values.