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Annual Report 2017
141
Notes to the
financial statements
31 march 2017
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(h)
Property, plant and equipment and depreciation (cont’d.)
Freehold land has an unlimited useful life and therefore is not depreciated. Land held on long lease is held on a
lease with an unexpired period of 50 years or more. A lease of less than 50 years is described as a short lease.
Other property, plant and equipment is depreciated on a straight-line basis to write- off the cost of each asset to its
residual value over the estimated useful life, at the following annual rates:
Buildings
2.0% - 10.0%
Leasehold land
Over lease period
Plant and machinery
4.0% - 33.33%
Fish canning facilities
2.0%
Warehouses, storage tanks and pipelines
4.0%
Motor vehicles
10.0% - 33.33%
Office equipment, furniture and fittings
6.66% - 25.0%
Renovations
10.0% - 20.0%
Tools, accessories and computer equipment
20.0% - 33.33%
Assets under construction or capital work-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 derecognition of the asset is included in the profit or loss in
the year the asset is derecognised.
(i)
Investment properties
Investment properties are properties which are held either to earn rental income or for capital appreciation or for
both. Such properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are stated at cost less accumulated depreciation and any accumulated impairment losses.
Freehold land has an unlimited useful life and therefore is not depreciated.
Depreciation of investment properties is provided for on a straight-line basis to write- off the cost of the property
to its residual value over its estimated useful life, at the following annual rates:
Freehold building
2%
Leasehold building
2% to 3%
Leasehold land
Over lease period