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47 Annual Report 2012
2 Signifcant Accounting Policies (cont’d)
(g) Development Properties for Sale (cont’d)
The costs of development properties for sale recognised in proft or loss on disposal are determined with
reference to the specifc costs incurred on the property sold and an allocation of any non-specifc costs
based on the relative size of the property sold.
(h) Impairment of Non-fnancial Assets (excluding Goodwill)
Non-fnancial assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of these assets may not be recoverable. If such indication exists, the recoverable
amount (i.e. the higher of the fair value less cost to sell and value in use) of the asset is estimated to
determine the amount of impairment loss.
For the purpose of impairment testing of these assets, recoverable amount is determined on an individual
asset basis unless the asset does not generate cash fows that are largely independent of those from
other assets. If this is the case, recoverable amount is determined for the cash generating units (“CGU”)
to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than
its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The
impairment loss is recognised in proft or loss unless the asset is carried at revalued amount, in which case,
such impairment loss is treated as a revaluation decrease.
An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used
to determine the assets’ recoverable amount since the last impairment loss was recognised. The carrying
amount of an asset is increased to its revised recoverable amount, provided that this amount does not
exceed the carrying amount that would have been determined (net of amortisation or depreciation) had
no impairment loss been recognised for the asset in prior years.
A reversal of impairment loss for an asset is recognised in proft or loss, unless the asset is carried at revalued
amount, in which case, such reversal is treated as a revaluation increase. However, to the extent that an
impairment loss on the same revalued asset was previously recognised in the proft or loss, a reversal of that
impairment is also recognised in proft or loss.
(i) Financial Assets and Liabilities
Management determines the classifcation of its fnancial assets at initial recognition and re-evaluates this
designation at every reporting date, with the exception that the designation of fnancial assets at fair value
through proft or loss at inception is not revocable.
Financial assets are recognised on the balance sheet when the Group becomes a party to the contractual
provisions of the fnancial instrument. When fnancial assets are recognised initially, they are measured at
their fair values.
Purchases and sales of fnancial assets are recognised on trade-date - the date - on which the Group
commits to purchase or sell the asset. A fnancial asset is derecognised where the contractual rights to
receive cash fows from the asset has expired or has been transferred and the Group has transferred
substantially all risks and rewards of ownership. On derecognition of a fnancial asset in its entirety, the
difference between the carrying amount and the sum of the consideration received is recognised in proft
or loss.
Financial liabilities within the scope of FRS 39 are recognised on the balance sheet when, and only when,
the Group becomes a party to the contractual provisions of the fnancial instrument.
Financial liabilities other than derivatives, gains and losses are recognised in proft or loss when the liabilities
are derecognised, and through the amortisation process.
(j) Financial Assets, at Fair Value through Proft or Loss
Financial assets at fair value through proft or loss (fnancial assets held for trading and those
designated at fair value through proft or loss) are initially recognised at fair value and subsequently
also carried at fair value. Realised and unrealised gains and losses arising from the changes in fair
value, interest and dividends are included in proft or loss in the period in which they arise. The fair
values of quoted fnancial assets are based on quoted market prices, which are the current bid prices.
Notes to the Financial Statements
30 September 2012