Page 229 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 6.4 Notes to Consolidated Financial Statements 227
Annual Report 2021/22

recovered as an asset and amortised to expenses on a systematic basis 4.9 Elevated train project costs
that is consistent with the pattern of revenue recognition. An impairment Elevated train project costs (“Project costs”) are stated at cost less
loss is recognised to the extent that the carrying amount of an asset accumulated amortisation and allowance for loss on impairment of
recognised exceeds the remaining amount of consideration that the assets (if any). The Group has capitalised all expenditures and other
entity expects to receive less direct costs. related expenses as project costs depending on the conditions of service
concession arrangement.
4.6 Cost to obtain a contract
The Group recognises commission paid to obtain a customer contract Project costs include management and consultant fees, design and
as an asset and amortised to expenses on a systematic basis that is installation costs, civil and system works, interest and other financing
consistent with the pattern of revenue recognition. An impairment loss is expenses.
recognised to the extent that the carrying amount of an asset recognised
exceeds the remaining amount of consideration that the entity expects Currently, the Group has not amortised the elevated train project costs.
to receive less direct costs. Provided that the amortisation period of the
asset that the Group otherwise would have used is one year or less, 4.10 Spare parts and amortisation
costs to obtain a contract are immediately recognised as expenses.
Spare parts are consisted as follows:

4.7 Investments in subsidiaries, joint ventures and associates
a) Consumable spare parts are valued at the lower of cost (weighted
Investments in joint ventures and associates are accounted for in the average method) and net realisable value and are charged through
consolidated financial statements using the equity method. profit or loss whenever actually consumed.

Investments in subsidiaries, joint ventures and associates are accounted b) Reusable spare parts are stated at cost less accumulated amortisation.
for in the separate financial statements using the cost method. Amortisation of reusable spare parts is calculated by reference to
their costs on the straight-line basis over the period of the operation
4.8 Project costs - media and maintenance agreements and is recorded in profit or loss.
Project costs - media are stated at cost less any accumulated
amortisation and any accumulated impairment losses (if any). 4.11 Investment properties
Investment properties are measured initially at cost, including transaction
Amortisation of project costs - media is calculated by reference to cost, costs. Subsequent to initial recognition, investment properties are
at a proportion of actual ridership and projected ridership over the stated at cost less accumulated depreciation and allowance for loss on
future period. impairment (if any).

Amortisation is included in determining income.