56
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
2.
Significant accounting policies
(continued)
2.4 Group accounting
(continued)
(c)
Joint venture
(continued)
(ii)
Equity method of accounting
(continued)
Unrealised gains on transactions between the Group and its joint venture are
eliminated to the extent of the Group’s interest in the joint venture. Unrealised losses
are also eliminated unless the transactions provide evidence of impairment of the
assets transferred. The accounting policies of the joint venture are changed where
necessary to ensure consistency with the accounting policies adopted by the Group.
(iii)
Disposal
Investment in joint venture is derecognised when the Group loses significant influence
or joint control. If the retained equity interest in the former joint venture is a financial
asset, the retained equity interest is measured at fair value. The difference between the
carrying amount of the retained interest at the date when joint control is lost, and its
fair value and any proceeds on partial disposal, is recognised in profit or loss.
2.5 Property, plant and equipment
(a)
Measurement
(i)
Buildings on leasehold land
Buildings on leasehold land are initially recognised at cost and are subsequently
carried at cost less accumulated depreciation and accumulated impairment losses.
(ii)
Other property, plant and equipment
All other items of property, plant and equipment are initially recognised at cost
and subsequently carried at cost less accumulated depreciation and accumulated
impairment losses.
(iii)
Components of costs
The cost of an item of property, plant and equipment initially recognised includes its
purchase price and any cost that is directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner
intended by management. Cost also includes borrowing costs (refer to Note 2.8 on
borrowing costs).
(b)
Depreciation
Depreciation of property, plant and equipment is calculated using the straight-line method to
allocate their depreciable amounts over their estimated useful lives as follows:
Useful lives
Buildings on leasehold land
Over the lease periods of 28 to 60 years
Machinery and equipment
10 to 15 years
Furniture and fittings
5 years
Office equipment
5 years
Motor vehicles
5 to 10 years
Vessels
15 years
Computers
1 to 3 years
Renovation
5 years
