158 | CapitaLand Limited Annual Report 2014
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
11 DEVELOPMENT PROPERTIES FOR SALE AND STOCKS
The Group
2014
$’000
2013
$’000
Restated
(a) Properties under development, units for which
revenue is recognised using percentage of
completion method
Costs incurred and attributable promts
3,412,627
3,184,265
Allowance for foreseeable losses
(109,190)
(17,190)
3,303,437
3,167,075
Progress billings
(867,944)
(441,485)
2,435,493
2,725,590
Other properties under development
Costs incurred
3,896,048
4,133,268
Allowance for foreseeable losses
(70,602)
(361,048)
3,825,446
3,772,220
Properties under development
6,260,939
6,497,810
(b) Completed development properties, at cost
1,432,370
889,307
Allowance for foreseeable losses
(20,303)
(5,463)
Completed development properties
1,412,067
883,844
(c) Consumable stocks
645
734
Total development properties for sale and stocks
7,673,651
7,382,388
(d) The Group adopts the percentage of completion method of revenue recognition for residential projects
under progressive payment scheme in Singapore. The stage of completion is measured in accordance with
the accounting policy stated in note 2.15. Signimcant assumptions are required in determining the stage of
completion and the total estimated development costs. In making the assumptions, the Group evaluates
them by relying on past experience and the work of specialists.
The Group makes allowance for foreseeable losses taking into account the Group’s recent experience
in estimating net realisable values of completed units and properties under development by reference
to comparable properties, timing of sale launches, location of property, expected net selling prices and
development expenditure. Market conditions may, however, change which may affect the future selling prices
on the remaining unsold residential units of the development properties and accordingly, the carrying value
of development properties for sale may have to be written down in future periods.
(e) As at 31 December 2014, development properties for sale amounting to approximately $5,207.1 million
(2013 $4,471.9 million) were mortgaged to banks to secure credit facilities of the Group (note 19).
