Page 81 - Annual Report 2022

19 Banka Kombëtare Tregtare Annual Report 2022

Banka Kombëtare Tregtare Sh.a.
Notes to the Consolidated Financial Statements for the year ended
31 December 2022 (Amounts in USD, unless otherwise stated)

3. Significant accounting policies (continued)
(k) Property and equipment

(i) Recognition and measurement
Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost
includes expenditures that are directly attributable to the acquisition of the asset.
When parts of an item of property or equipment have different useful lives, they are accounted for as separate items (major
components) of property and equipment.
(ii) Subsequent costs
The cost of replacing a part of an item of property or equipment is recognised in the carrying amount of the item if it is probable
that the future economic benefits embodied within the part will flow to the Bank and its cost can be measured reliably. The
carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property and equipment are
recognised in profit or loss as incurred.

(iii) Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of
property and equipment. Land is not depreciated.
The estimated useful lives for the current and comparative periods are as follows:

• Buildings and leasehold improvements 20 years
• Motor vehicles and other equipment 5 years
• Office equipment 5 years
• Computers and electronic equipment 4 years
Depreciation methods, useful lives and residual values are reassessed at the reporting date.