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ANNUAL REPORT 2014/2015
NOTES TO THE FINANCIAL STATEMENTS
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
Property, Plant and Equipment (Cont’d)
Cost includes any cost directly attributable to bringing the asset to the location and condition necessary for
it to be capable of operating in the manner intended by management. Subsequent cost is recognised as an
asset only when it is probable that future economic benefits associated with the item will flow to the entity
and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit
or loss when incurred.
Investment Property
Investment property is property held either to earn rental income or for capital appreciation or for both, but
not for sale in the ordinary course of business, use in the production or supply of goods or services or for
administrative purposes. Investment property is measured at cost on initial recognition and subsequently at
fair value with any change therein recognised in profit or loss. The fair value is determined based on internal
valuation or independent professional valuation. Independent professional valuation is obtained at least once
every 3 years.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of
self-constructed investment property includes the cost of materials and direct labour, any other costs directly
attributable to bringing the investment property to a working condition for their intended use and capitalised
borrowing costs.
Subsequent expenditure relating to investment properties that has already been recognised is added to the
carrying amount of the asset when it is probable that future economic benefits, in excess of originally assessed
standard of performance of the existing asset, will flow to the Group. All other subsequent expenditure is
recognised as an expense in the period in which it is incurred.
When an investment property is disposed of, the resulting gain or loss recognised is the difference between net
disposal proceeds and the carrying amount of the property.
Investment properties are not depreciated. The properties are subject to continual maintenance and regular
revaluation on the basis set out above.
