Page 230 - BTSGroup ONE REPORT 2021/22_EN

228 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l

Depreciation of investment properties is calculated by reference to their However, a revaluation increase will be recognised as income to
costs on the straight-line basis over the following estimated useful lives: the extent that it reverses a revaluation decrease of the same asset
previously recognised as an expense.
Buildings for rent period of lease
- When an asset’s carrying amount is decreased as a result of a
Depreciation of the investment properties is included in determining income. revaluation of the Group’s assets, the decrease is recognised as an
expense in profit or loss. However, a revaluation decrease is to be
No depreciation is provided on land awaiting sales and investment charged directly against the related “Revaluation surplus on assets”
properties in progress. to the extent that the decrease does not exceed the amount held in
the “Revaluation surplus on assets” in respect of those same assets.

On disposal of investment properties, the difference between the net
disposal proceeds and the carrying amount of the asset is recognised Depreciation of plant and equipment is calculated by reference to their
in profit or loss in the period when the asset is derecognised. costs on the straight-line basis over the following estimated useful lives:

4.12 Property, plant and equipment and depreciation Land improvement 10 - 20 years
Land is stated at revalued amount and buildings and equipment are Buildings and improvements 3 - 20 years
stated at cost less accumulated depreciation and allowance for loss on Golf course development costs 5 - 30 years
impairment of assets (if any).
Machinery and equipment 1 - 20 years
Land is initially recorded at cost on the acquisition date, and subsequently Furniture and office equipment 2 - 10 years
revalued by an independent professional appraiser to its fair values. Motor vehicles 2 - 6 years
Revaluation is made with sufficient regularity to ensure that the
carrying amount does not differ materially from fair value at the end of Depreciation is included in determining income.
reporting period.

No depreciation is provided on land, construction in progress and assets
Differences arising from the revaluation are dealt with in the financial under installation.
statements as follows:

An item of property, plant and equipment is derecognised upon disposal
- When an asset’s carrying amount is increased as a result of a or when no future economic benefits are expected from its use or
revaluation of the Group’s assets, the increase is recognised in the disposal. Any gain or loss arising on disposal of an asset is included
statements of other comprehensive income and credited directly in profit or loss when the asset is derecognised.
to equity under the heading of “Revaluation surplus on assets”.