Page 53 - Learn Africa 2021 Annual Report

Learn Africa Plc
Notes to the Financial Statements (cont’d)

For the year ended 31 March 2021

assumptions about future economic conditions and credit behaviour (e.g. the likelihood of
customers defaulting and the resulting losses). Explanation of the inputs, assumptions and
estimation techniques used in measuring ECL is further detailed in Note 25, which also
sets out key sensitivities of the ECL to changes in these elements.

A number of significant judgements are also required in applying the accounting
requirements for measuring ECL, such as:

• Determining criteria for significant increase in credit risk;
• Choosing appropriate models and assumptions for the measurement of ECL;
• Establishing the number and relative weightings of forward-looking scenarios for
each type of product/market and the associated ECL; and
• Establishing groups of similar financial assets for the purpose of measuring ECL.

2.3.2 Property, plant and equipment, and intangible assets
The Company carries its property, plant and equipment, and intangible assets at cost in
the statement of financial position. Estimates and assumptions made to determine their
carrying value and related depreciation and amortisation are critical to the Company’s
financial position and performance. The charge in respect of periodic depreciation and
amortisation is derived after determining an estimate of an asset’s expected useful life and
the expected residual value at the end of its life.

The useful lives and residual values of the assets are determined by Management at
the time the asset is acquired and reviewed annually. The lives are based on historical
experience with similar assets as well as anticipation of future events, which may impact
their lives, such as changes in technology. Further details of property, plant and equipment,
and intangible assets are disclosed in Notes 8 and 11 respectively.

2.3.3 Investment property
The Company carries its investment properties at fair value, with changes in fair value
being recognised in the statement of profit or loss. The Company engaged an independent
valuation specialist to assess fair value as at 31 March 2021 for investment properties.
For investment properties, a valuation methodology based on market comparable sales
model was used, as there is a lack of comparable market data because of the nature of the
properties. Further details are provided in Note 9 of the financial statements.

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