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HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
10.
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
As at the balance sheet date, the net carrying amount of property, plant and equipment purchased
under finance leases were as follows:
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Plant and machinery
30
109
–
–
Motor vehicles
45
399
–
297
75
508
–
297
Lease assets are pledged as security for the related finance lease liability.
The net carrying amount of property, plant and equipment of the Group and the Company that were
mortgaged as security for bank borrowings (Note 22) were as follows:
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Leasehold properties
6,298
7,214
4,281
4,755
Impairment of assets
During the year, the Group carried out a review of the recoverable amount of assets, in particular,
production equipment of certain subsidiaries that had ceased production activities. An impairment
loss of $1,659,000 (2013: Nil), representing the write-down of these assets to their recoverable
amount was recognised in “Other expenses” (Note 7) line item of profit or loss for the year ended
31 December 2014.
