10.
PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
As at the balance sheet date, the net carrying amount of property, plant and equipment purchased
under finance leases were as follows:
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Plant and machinery
23
30
–
–
Motor vehicles
868
45
868
–
891
75
868
–
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
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Leasehold properties
5,384
6,298
3,807
4,281
Impairment of assets
During the year, the Group carried out a review of recoverable amount of assets of certain subsidiaries
that had ceased operating activities. An impairment loss of $538,000 (2014: $1,659,000), representing
the write-down of assets to their recoverable amount was recognised in “Other operating expenses”
(Note 7) line item of profit or loss for the year ended 31 December 2015.
83
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
