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NOTES TO FINANCIAL STATEMENTS
For the fnancial year ended 31 March 2014
2. Summary of significant accounting policies (cont’d)
2.8 Property, plant and equipment (cont’d)
Any revaluation surplus is recognised in other comprehensive income and accumulated in equity under the asset revaluation reserve in
equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in proft or loss, in which case
the increase is recognised in proft or loss. A revaluation defcit is recognised in proft or loss, except to the extent that it offsets an existing
surplus on the same asset carried in the asset revaluation reserve.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount
is restated to the revalued amount of the asset. The revaluation surplus included in the asset revaluation reserve in respect of an asset is
transferred directly to retained earnings on retirement or disposal of the asset.
Freehold land has an unlimited useful life and therefore is not depreciated.
Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:
Buildings – Over the lower of the remaining lease terms or 50 years
Machinery and equipment – 5 years to 10 years
Motor vehicles – 5 years
Renovation – 3 years to 5 years
Electrical fttings – 5 years to 10 years
Furniture – 5 years to 10 years
Computers – 5 years
Assets under construction included in property, plant and equipment are not depreciated as these assets are not yet available for use.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that
the carrying value may not be recoverable.
The residual values, useful life and depreciation method are reviewed at each fnancial year-end and adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefts are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset is included in proft or loss in the year the asset is derecognised.
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Annual Report 2014 •