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Transfers are made to investment property when there

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Transfers are made to investment property when there is a change in use, evidenced by ending ofowner-occupation, commencement of an operating lease to another party or ending of construction ordevelopment.Transfers are made from investment property when, and only when, there is a changein use, evidenced by commencement of owner-occupation or commencement of development with aview to sale.Transfers between investment property, owner-occupied property and inventories donot change the carrying amount of the property transferred and they do not change the cost of theproperty for measurement or for disclosure purposes.The Group discloses the fair values of its investment properties in accordance with PAS 40.TheGroup engaged independent valuation specialist to assess fair value as at December 31, 2018 and2017.The Group’s investment properties consist of land and building pertaining to land properties,retail (malls) and office properties.These were valued by reference to market-based evidence usingcomparable prices adjusted for specific market factors such as nature, location and condition of theproperty.Property, Plant and EquipmentProperty, plant and equipment, except for land, are carried at cost less accumulated depreciation andamortization and any impairment in value.Land is carried at cost less any impairment in value.Theinitial cost of property, plant and equipment consists of its construction cost or purchase price and anydirectly attributable costs of bringing the property, plant and equipment to its working condition andlocation for its intended use.Construction-in-progress is stated at cost.This includes cost of construction and other direct costs.Construction-in-progress is not depreciated or amortized until such time that the relevant assets arecompleted and put into operational use.Major repairs are capitalized as part of property, plant and equipment only when it is probable thatfuture economic benefits associated with the item will flow to the Group and the cost of the items canbe measured reliably.All other repairs and maintenance are charged against current operations asincurred.
- 39 -*SGVFS032939*Depreciation and amortization of property, plant and equipment commences once the property, plantand equipment are available for use and computed on a straight-line basis over the estimated usefullives of the property, plant and equipment as follows:Buildings and improvements20 to 40 yearsMachinery and equipment5 to 7 yearsHotel property and equipment20 to 50 yearsFurniture, fixtures and equipment3 to 10 yearsTransportation equipment3 to 5 yearsThe assets’ residual values, useful lives and depreciation and amortization methods are reviewedperiodically to ensure that the amounts, periods and method of depreciation and amortization areconsistent with the expected pattern of economic benefits from items of property, plant andequipment.

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Term
Spring
Professor
N/A
Tags
Subsidiary, Makati City

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