132 / 220
1 28
NOTES TO THE FINANCIAL STATEMENTS
31 MARCH 2018
fInanCIal StatementS
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 and buildings other than office buildings are stated at revalued amount, which is the fair value at the
date of the revaluation less any accumulated impairment losses. Revaluations are made at least once in every five
years based on a revaluation by an independent valuer on an open market value basis. Any revaluation surplus
is credited to the revaluation reserve included within equity, except to the extent that it reverses a revaluation
decrease for the same asset previously recognised in profit or loss, in which case the increase is recognised in
profit or loss to the extent of the decrease previously recognised.
A revaluation deficit is first offset against unutilised previously recognised revaluation surplus in respect of the
same asset and the balance is thereafter recognised in profit or loss. Upon disposal or retirement of an asset, any
revaluation reserve relating to the particular asset is transferred directly to retained earnings.
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.