Australian Human Rights Commission Annual Report 2021–22 2.2 Non-Financial Assets (continued) Accounting Policy (continued) Impairment All assets were assessed for impairment at 30 June 2022. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost. Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Intangibles The Commission's intangibles comprise internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Commission's software are 2 to 5 years (2021: 2 to 5 years years). All software assets were assessed for indications of impairment as at 30 June 2022. Accounting Judgements and Estimates The fair value of infrastructure, plant and equipment has been taken to be the market value of similar assets as determined by an independent valuer. 100