70
STAMFORD LAND CORPORATION LTD
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(vii)
Borrowing costs
Borrowing costs are recognised in profit or loss using the effective interest method except for those
costs that are directly attributable to the construction or development of properties and assets under
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development of properties and assets under construction, as well as those in relation to general
borrowings used to finance the construction or development of properties and assets under
construction.
The actual borrowing costs incurred during the period up to the issuance of the temporary occupation
permit less any investment income on temporary investment of these borrowings, are capitalised in
the cost of the property under development.
(viii)
Property, plant and equipment
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impairment loss. The gain or loss arising from the derecognition of an item of property, plant and
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amount of the item and is recognised in profit or loss.
Depreciation is based on the cost of an asset less its residual value. Significant components of individual
assets are assessed and if a component has a useful life that is different from the remainder of that
asset, that component is depreciated separately.
Depreciation is recognised as an expense in profit or loss on a straight-line basis over the estimated
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Freehold buildings
– 100 years
Leasehold land and buildings
– terms of the leases ranging from 51 to 70 years
Renovations, furniture and fittings
– 2 to 25 years
Motor vehicles
– 5 to 7 years
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– 2 to 15 years
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ready for use. No depreciation is provided on freehold land and capital work-in-progress. Depreciation
methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted
if appropriate.
