NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of
any changes in estimate accounted for on a prospective basis.
Fully depreciated property, plant and equipment still in use are retained in the financial statements.
The gain or loss arising on the disposal or retirement of a property, plant and equipment is determined as the
difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
INVESTMENT PROPERTIES – Investment properties are properties held to earn rental income and / or for capital
appreciation and properties under construction for such purposes. They are measured initially at cost, including
transaction costs and subsequent to initial recognition, measured at fair value. Professional valuations are obtained
at least once every year. Gains or losses arising from changes in the fair value of investment property are included
in profit or loss for the period in which they arise. Where there is an inability to determine fair value reliably when
comparable market transactions are infrequent and alternative reliable estimates of fair value are not available, the
investment property is measured at cost.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn
from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition
of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset)
is included in profit or loss in the period in which the property is derecognised.
INTANGIBLE ASSET – This relates to a club membership held on a long-term basis and is stated at cost less any
impairment loss.
IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS – At the end of each reporting period, the Group
reviews the carrying amounts of its tangible and intangible assets other than investment properties, derivative
financial instruments and held-for-trading investment carried at fair value, to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount
of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible
to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-
generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
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