2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.7
Property, plant and equipment (continued)
Depreciation is computed on the straight line basis over the estimated useful lives of the assets as
follows:
Buildings
–
20 to 50 years
Leasehold buildings
–
10 to 41 years
Plant and machinery
–
5 to 10 years
Furniture and fittings
–
4 to 10 years
Office equipment
–
3 to 10 years
Renovation
–
5 to 10 years
Motor vehicles
–
4 to 10 years
Construction in progress 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 value, useful life and depreciation method are reviewed at each financial year-end, and
adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss on de-recognition of the asset is
included in profit or loss in the year the asset is derecognised.
2.8
Intangible assets
Intangible assets acquired separately are measured initially at cost. Following initial acquisition,
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment
losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed
for impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method are reviewed at least at each financial year-end.
Changes in the expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset is accounted for by changing the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates.
59
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
