ANNUALREPORT 2013
79
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
f)
Property, Plant andEquipment
All items of property, plant andequipment are initially recordedat cost. The cost of an item
of property, plant and equipment initially recognised includes its purchase price and any
cost that isdirectlyattributable tobringing theasset to the locationandconditionnecessary
for it tobe capableof operating in themanner intendedbymanagement. Cost also include
borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset.
Subsequent costsare included in theasset’s carryingamount or recognisedasa separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the itemwill flow to theGroup and the cost of the item can bemeasured reliably. The
carrying amount of the replaced part is derecognised. All other repairs and maintenance
are charged to profit or loss during the financial period inwhich they are incurred.
Subsequent to recognition,property,plantandequipmentarestatedatcost lessaccumulated
depreciationand any accumulated impairment losses.
Depreciation of property, plant and equipment, other than capital work-in-progress which
is not depreciated, is calculated to write off the cost of the property, plant and equipment
ona straight-linebasis over theexpecteduseful lives of theproperty, plant andequipment
concerned. The annual depreciation rates usedare as follows:
%
Transit TV system
10
Broadcast centre, network andSMS gateway
10
Furnitureand fittings
20
Computer software
10
Motor vehicles
20
Office equipment
20
Plant andmachinery
10
Renovation and signboard
10
The carrying values of property, plant and equipment are reviewed for impairment when
eventsor change incircumstances indicate that thecarryingvaluemaynot be recoverable.
The residual values, useful lives and depreciationmethods are reviewed at each financial
year end, andadjusted prospectively, if appropriate.
An itemof property, plant andequipment is derecognisedupondisposal or whenno future
economicbenefitsareexpected from itsuseordisposal.Gainor lossarising from thedisposal
of anasset isdeterminedas thedifferencebetween theestimatednet disposal proceedand
the carrying amount of the asset, and is recognised in profit or loss.
