Positioning for the Future | 123
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(cont’d)
2.5 Intangible assets
(cont’d)
Acquisition up to 31 December 2009
Prior to 1 January 2010, goodwill is measured at cost less accumulated impairment losses. Goodwill is tested
for impairment as described in note 2.11. Negative goodwill is credited to the promt or loss in the period of
the acquisition.
Acquisition of non-controlling interests
From 1 January 2010, acquisitions of non-controlling interests are accounted for as transactions with owners
in their capacity as owners and therefore no goodwill is recognised. Previously, goodwill arising on the
acquisition of non-controlling interests in a subsidiary has been recognised, and represented the excess of
the cost of the additional investment over the carrying amount of the interest in the net assets acquired at
the date of the transaction.
(b) Other intangible assets
Other intangible assets with mnite useful lives are measured at cost less accumulated amortisation and
accumulated impairment losses. These are amortised in the promt or loss on a straight-line basis over their
estimated useful lives of one to 10 years, from the date on which the assets are available for use.
Other intangible assets with indemnite useful lives are not amortised and are measured at cost less accumulated
impairment losses.
2.6 Investment properties and investment properties under development
Investment properties are properties held either to earn rental or for capital appreciation or both. Investment
properties under development are properties being constructed or developed for future use as investment
properties. Certain of the Group’s investment properties acquired through interests in subsidiaries,
are accounted for as acquisition of assets. Investment properties and investment properties under
development are initially recognised at cost, including transaction costs, and subsequently at fair value with
any change therein recognised in the promt or loss. Cost includes expenditure that is directly attributable
to the acquisition of the investment property. The cost of self-constructed investment property includes the
cost of materials and direct labour, any other costs directly attributable to bringing the investment property
to a working condition for their intended use and capitalised borrowing costs. The fair value is determined
based on internal valuation or independent professional valuation. Independent professional valuation is
obtained at least once every three years.
When an investment property or investment property under development is disposed off, the resulting gain
or loss recognised in the promt or loss is the difference between the net disposal proceed and the carrying
amount of the property.
Transfers to, or from, investment properties are made where there is a change in use, evidenced by
t
development with a view to sell, for a transfer from investment properties to development properties
for sale;
t
commencement of owner-occupation, for a transfer from investment properties to property, plant and
equipment; and
t
end of owner-occupation, for a transfer from property, plant and equipment to investment properties.
2.7 Non-current assets held for sale or distribution
Non-current assets comprising assets and liabilities, that are expected to be recovered primarily through
sale rather than through continuing use, are classimed as held for sale. Immediately before classimcation as
held for sale, the assets are remeasured in accordance with the applicable FRSs. Thereafter, the assets are
generally measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses
on initial classimcation as held for sale or distribution and subsequent gains or losses on remeasurement are
recognised in promt or loss. Gains are not recognised in excess of any cumulative impairment loss.
