71
ANNUAL REPORT 2015/2016
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(viii)
Property, plant and equipment (cont’d)
Cost includes any cost directly attributable to bringing the asset to the location and condition
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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.
When there is a change of use, the property is remeasured to fair value up to the date of change in
use. Any gain arising on remeasurement is recognised in profit or loss to the extent that it reverses any
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Reserve”. The asset revaluation reserve is transferred to retained profits upon disposal of the property.
Any loss is recognised directly to the profit or loss.
(ix)
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
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is determined based on internal valuation or independent professional valuation. Independent
professional valuation is obtained at least once every 3 years.
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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.
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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
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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.
