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Note 16. Non-current Assets - Intangibles

2019

2018

$'000

$'000

Computer software internally developed - at cost

8,499

8,450

Less: Accumulated amortisation

(3,715)

(3,138)

4,784

5,312

Computer software purchased - at cost

3,672

3,908

Less: Accumulated amortisation

(2,760)

(2,266)

912

1,642

5,696

6,954

Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:

Computer software internally developed

Computer software purchased

Total

$'000

$'000

$'000

Balance at 1 July 2018

5,312

1,642

6,954

Additions

946

278

1,224

Impairment of assets

(385)

(20)

(405)

Transfers in/(out)

404

(404)

-

Amortisation expense

(1,493)

(584)

(2,077)

Balance at 30 June 2019

4,784

912

5,696

Australian Hearing on 1 July 2019 changed its trading name to Hearing Australia. This change required new iconography and new brand assets to be implemented and resulted in the assessment of impairment of existing brand assets. The net book value of identified assets that no longer have a useful life at 30 June 2019 was $405,000.

Accounting policy for intangible assets
Intangible assets acquired are initially recognised at cost. Intangible assets acquired at no cost, or for nominal consideration are initially recognised as assets and income at their fair value at the date of acquisition. The gains or losses recognised in profit or loss arising from the de-recognition of an intangible asset is measured as the difference between net disposal proceeds, if any, and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.

Computer software internally developed and purchased
Costs relating to computer software internally developed are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; Hearing Australia is able to use or sell the asset; Hearing Australia has sufficient resources; and intent to complete the development and its costs can be measured reliably. Following the initial capitalisation of software internally developed or purchased software, the cost model is applied requiring the assets to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation is on a straight-line basis over the period of their expected benefit, being their finite useful lives between three and seven years.