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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
LEASES (Cont’d)
The Group as lessee
Assets held under finance leases are recognised as assets of the Group at their fair value at the inception of the lease
or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included
in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance
charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are charged directly to profit or loss, unless they are directly attributable to qualifying assets, in
which case they are capitalised in accordance with the Group’s general policy on borrowing costs. Contingent rentals are
recognised as expenses in the periods in which they are incurred.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant
lease unless another systematic basis is more representative of the time pattern in which economic benefits from the
leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period
in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability.
The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where
another systematic basis is more representative of the time pattern in which economic benefits from the leased asset
are consumed.
PROPERTY, PLANT AND EQUIPMENT
- Freehold land and capital work-in-progress are stated at cost less impairment
losses. Other items of property, plant and equipment are carried at cost, less accumulated depreciation and any
impairment loss where the recoverable amount of the asset is estimated to be lower than its carrying amount. Cost
includes expenditure that is directly attributable to the acquisition of the asset and includes the cost of dismantling
and removing the items and restoring the site on which they are located.
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, using the straight-line
method, on the following bases:
Freehold buildings
- 20 to 42 years
Leasehold land and buildings
- 16 to 50 years
Furniture, fittings and renovation
- 5 to 15 years
Plant and machinery
- 3 to 10 years
Equipment and motor vehicles
- 2 to 7 years
Computers
- 1 to 5 years
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
