ANNUAL REPORT 2015 |
107
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.6 Investment properties
Investment properties are properties which are held to earn rental yields or for capital appreciation or for both and are
not occupied by the Group. Investment properties also include properties that are being constructed or developed for
future use as investment properties. Investment properties are initially measured at cost, which includes transaction
costs. After initial recognition, investment properties are stated at fair value.
If the Group determines that the fair value of an investment property under construction is not reliably determinable
but expects the fair value of the property to be reliably determinable when construction is complete, the Group shall
measure that investment property under construction at cost until either its fair value becomes reliably determinable
or construction is completed (whichever is earlier). Once the Group is able to measure reliably the fair value of an
investment property under construction that has previously been measured at cost, the Group shall measure that
property at its fair value.
The fair value of investment properties reflect among other things, rental income from current leases and other
assumptions that market participants would use when pricing investment properties under current market conditions.
Fair values of investment properties are based on valuations by registered independent valuers with appropriate
recognised professional qualification and has recent experience in the location and category of the investment
properties being valued.
A gain or loss arising from a change in the fair value of investment properties is recognised in profit or loss for the period
in which it arises.
Investment properties are derecognised when either they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal. The gains or losses arising from the
retirement or disposal of investment property is determined as the difference between the net disposal proceeds, if any,
and the carrying amount of the asset and is recognised in profit or loss in the period of the retirement or disposal.
4.7 Investments
(a) Subsidiaries
A subsidiary is an entity in which the Group and the Company are exposed, or have rights, to variable returns
from its involvement with the subsidiary and have the ability to affect those returns through its power over the
subsidiary.
An investment in subsidiary, which is eliminated on consolidation, is stated in the separate financial statements
of the Company at cost. Put options written over non-controlling interests on the acquisition of subsidiary shall
be included as part of the cost of investment in the separate financial statements of the Company. Subsequent
changes in the fair value of the written put options over non-controlling interests shall be recognised in profit or
loss. Investments accounted for at cost shall be accounted for in accordance with MFRS 5
Non-current Assets Held
for Sale and Discontinued Operations
when they are classified as held for sale (or included in a disposal group that is
classified as held for sale) in accordance with MFRS 5.
When control of a subsidiary is lost as a result of a transaction, event or other circumstance, the Group would
derecognise all assets, liabilities and non-controlling interests at their carrying amount and to recognise the fair
value of the consideration received. Any retained interest in the former subsidiary is recognised at its fair value at
the date control is lost. The resulting difference is recognised as a gain or loss in profit or loss.
