79
ANNUAL REPORT 2015/2016
Notes to Financial Statements
3
CRITICAL JUDGEMENTS, ASSUMPTIONS AND ESTIMATION UNCERTAINTIES
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judgements, estimates and assumptions that affect the applicationof accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
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estimates are recognised in the period inwhich the estimates are revised and in any future periods affected.
Information about judgements, estimation uncertainties and assumptions that have a significant risk of
resulting in a material adjustment within the next financial year are as follows:
Current and deferred tax
In determining the amount of current and deferred tax, the Group takes into account the impact of
uncertain tax positions and whether additional taxes and interest may be due. The Group believes
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factors, including interpretations of tax law and prior experience. This assessment relies on estimates
and assumptions and may involve a series of judgements about future events. New information
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determination is made.
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Impairment of properties for sale
Management makes allowance for foreseeable losses taking into account the Group’s recent
experience in estimating net realisable values of units by reference to comparable properties, timing of
sale launches, location of property and expected net selling prices. Market conditions may, however,
change which may affect the future selling prices on the remaining unsold residential units of the
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The carrying amounts of the completed properties for sale and development properties for sale are set
out in Notes 17 and 18 respectively.
Fair value determination of investment properties
The fair values of investment properties are estimated based on valuations carried out by management
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recent experience in the location and category of property being valued. The valuations reflect when
appropriate, comparable sales of similar properties or estimated market values based on projection of
income and expense streams over period of leases, using market rates of return.
The carrying amount of investment properties is set out in Note 20.
