72
STAMFORD LAND CORPORATION LTD
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(x)
Properties under development
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properties.
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other direct and related development expenditure, and borrowing costs incurred in developing the
properties. Borrowing costs payable on loans funding a property under development are capitalised,
on a specific identification basis, as part of the cost of the property under development until the
completion of development. Completed properties are transferred and accounted for as completed
properties for sale.
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properties are transferred and accounted for as investment properties.
(xi)
Impairment of non-financial assets
Property, plant and equipment
Investments in subsidiaries
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there is any objective evidence or indication that these assets may be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash inflows that are largely independent of those from other assets. If this is the case, the
recoverable amount is determined for the cash-generating unit (“CGU”) to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment
loss in profit or loss, unless the asset is carried at revalued amount, in which case, such impairment loss
is treated as a revaluation decrease.
