Consolidation of the subsidiaries in the PRC is based on the subsidiaries

Consolidation of the subsidiaries in the prc is based

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Consolidation of the subsidiaries in the PRC is based on the subsidiaries’ financial statements prepared in accordance with IFRS and IAS. Profits reflected in the financial statements prepared in accordance with IFRS and IAS may differ from those reflected in the PRC statutory financial statements of the subsidiaries, prepared for PRC reporting purposes. In accordance with the relevant laws and regulations, profits available for distribution by the PRC subsidiaries are based on the amounts stated in the PRC statutory financial statements respectively.(d) PROPERTY, PLANT AND EQUIPMENTAll items of property, plant and equipment are initially recorded at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.Depreciation of property, plant and equipment is computed on a straight-line basis to allocate their depreciable amounts over their estimated useful lives as follows:Leasehold buildings and infrastructure 25 yearsPlant and machinery 10 yearsFurniture, fittings and equipment 5 yearsMotor vehicles 5 yearsOther facilities 10 – 15 yearsRenovation 3 yearsConstruction-in-progress, which represents factory premises and buildings under construction, is stated at cost less any impairment losses. Cost comprises direct costs incurred during the periods of construction, installation and testing. Capitalisation of these costs ceases and construction-in-progress is transferred to the appropriate class of property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed and the assets are available for use.Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use.The residual values, useful lives and depreciation methods of property, plant and equipment are reviewed, and adjusted prospectively, if appropriate, at the end of each reporting period to ensure that the amount, method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment. 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.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 profit or loss in the financial year the asset is derecognised.
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NOTES TO THE FINANCIAL STATEMENTSFINANCIAL YEAR ENDED 31 DECEMBER 2O17 (cont’d)HB GLOBAL LIMITED lAnnual Report 2017512. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)(e) BORROWING COSTSBorrowing costs are capitalised if they are directly attributable to the acquisition, construction or production of a qualifying asset. Capitalisation of borrowing costs commences when the activities
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