annual report 2014
I
Notes to the Financial Statements
31 December 2014 (Cont’d)
65
4.
SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.2 Basis of consolidation (Cont’d)
(ii)
Business combination involving entities not under common control (Cont’d)
If the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference
between:
(a)
The aggregate of the fair value of the consideration received and the fair value of any retained
interest; and
(b)
The previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary
and any non-controlling interests.
Amounts previously recognised in other comprehensive income in relation to the subsidiary are accounted
for (i.e. reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would
be required if the relevant assets or liabilities were disposed of. The fair value of any investments retained
in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition
for subsequent accounting under MFRS 139
Financial Instruments: Recognition and Measurement
or,
where applicable, the cost on initial recognition of an investment in associate or joint venture.
4.3 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 are stated at cost less accumulated depreciation and
any accumulated impairment losses.
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 annual depreciation rates are as follows:
Factory buildings and warehouse
2.26%
Staff accommodation and amenities
2.26%
Infrastructure
2.26%
Plant and machinery
10%
Electronic equipment
10% - 33.33%
Motor vehicles
10%
Furniture, fitting and other equipment
10% - 20%
Construction-in-progress represents building under construction and is stated at cost. Construction-in-progress
is not depreciated until such time when the asset is available for use.
