86
Baker Technology LimitedAnnual Report 2014
2.
Summary of significant accountingpolicies (cont’d)
2.6
Associates (cont’d)
Upon lossof significant influenceover theassociate, theGroupmeasures the retained interest at fair value. Any
differencebetween the fair valueof theaggregateof the retained interest andproceeds fromdisposal and the
carryingamountof the investmentat thedate theequitymethodwasdiscontinued is recognised inprofitor loss.
If theGroup’s ownership interest in an associate is reduced, but theGroup continues to apply the equity
method, theGroup reclassifies toprofit or loss theproportionof thegainor loss that hadpreviously been
recognised in other comprehensive income relating to that reduction in ownership interest if that gain or
losswouldbe required tobe reclassified toprofit or loss on thedisposal of the related assets or liabilities.
2.7
Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition,
property,plantandequipmentother than freehold landandbuildingaremeasuredatcost lessaccumulated
depreciation and any accumulated impairment losses.
The cost includes the cost of replacingpart of theproperty, plant and equipment andborrowing costs that are
directly attributable to theacquisition, constructionor productionof aqualifyingproperty, plant andequipment.
Thecostofan itemofproperty,plantandequipment isrecognisedasanasset if,andonly if, it isprobablethat future
economicbenefitsassociatedwith the itemwillflow to theGroupand thecostof the itemcanbemeasured reliably.
Whensignificantpartsofproperty,plantandequipmentarerequiredtobereplaced in intervals,theGrouprecognises
such parts as individual assets with specific useful lives and depreciation, respectively. Likewise, when a major
inspection isperformed, itscost is recognised in thecarryingamountof theplantandequipmentasa replacement if
therecognitioncriteriaaresatisfied.Allotherrepairandmaintenancecostsarerecognised inprofitor lossas incurred.
Depreciationof anassetbeginswhen it isavailable for useand iscomputedona straight-linebasisover the
estimateduseful lifeof the asset as follows :
Leasehold land andbuildings
-
over remaining terms of lease
Leasehold improvements
-
5 to 7 years
Furniture and fittings
-
5 years
Officeequipment
-
3 to 5 years
Motor vehicles
-
4 to 5 years
Plant andequipment
-
3 to 10 years
Assets under construction arenot depreciated as these assets arenot yet available for use.
Fully depreciated assets still in use are retained in the financial statements until they are no longer in use
andno further charge for depreciation ismade in respect of these assets.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
