ANNUAL REPORT 2015 |
105
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.3 Business combinations (cont’d)
Components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders
to a proportionate share of the entity’s net assets in the event of liquidation are initially measured at the present
ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All
other components of non-controlling interests shall be measured at their acquisition-date fair values, unless another
measurement basis is required by MFRSs. The choice of measurement basis is made on a combination-by-combination
basis. Subsequent to initial recognition, the carrying amount of non-controlling interests is the amount of those interests
at initial recognition plus the non-controlling interests’ share of subsequent changes in equity.
Any excess of the sum of the fair value of the consideration transferred in the business combination, the amount of non-
controlling interest in the acquiree (if any), and the fair value of the previously held equity interest of the Group in the
acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities is recorded as goodwill in the
statement of financial position. The accounting policy for goodwill is set out in Note 4.8(a) to the financial statements. In
instances where the latter amount exceeds the former, the excess is recognised as a gain on bargain purchase in profit
or loss on the acquisition date.
4.4 Property, plant and equipment and depreciation
All items of property, plant and equipment are initially measured at cost. Cost includes expenditure that is directly
attributable to the acquisition of the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when the cost is incurred and it is probable that the future economic benefits associated with the asset would flow
to the Group and the cost of the asset could be measured reliably. The carrying amount of parts that are replaced is
derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as
incurred. Cost also comprises the initial estimate of dismantling and removing the asset and restoring the site on which
it is located for which the Group is obligated to incur when the asset is acquired, if applicable.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the
asset and which has different useful life, is depreciated separately.
After initial recognition, property, plant and equipment except for freehold land and properties under construction, are
stated at cost less any accumulated depreciation and any accumulated impairment losses.
Freehold land has unlimited useful life and is not depreciated. Properties under construction are not depreciated until
such time when the asset is available for use. Leasehold land is depreciated over the leasehold period from seventy-one
(71) to ninety-six (96) years.
Properties under construction represent buildings under extension work or construction and are stated at cost.
Depreciation is calculated to write off the cost of the assets to their residual values on a straight line basis over their
estimated useful lives. The principal depreciation rates are as follows:
Buildings
2%
Electrical installations
10% - 15%
Furniture, fittings and counter fixtures
10% - 33
1
/
3
%
Motor vehicles
20%
Office equipment
10% - 50%
Plant and machinery
15% - 20%
Renovation
10% - 33
1
/
3
%
At the end of each reporting period, the carrying amount of an item of property, plant and equipment is assessed for
impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. A write
down is made if the carrying amount exceeds the recoverable amount (see Note 4.9 to the financial statements on
impairment of non-financial assets).
