. 8 9
ANNUAL
REPORT
20 1 7
THE BE ST
I N US
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
2.
SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES (CONT’D)
2.6
Property, plant andequipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition,
property, plant andequipment other than freehold landandbuildingaremeasuredat cost less accumulated
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 the acquisition, construction or production of a qualifying property, plant and
equipment. Thecost of an itemof property, plant andequipment is recognisedas anasset if, andonly if, it is
probable that future economic benefits associatedwith the itemwill flow to theGroup and the cost of the
itemcanbemeasured reliably.
When significant parts of property, plant and equipment are required tobe replaced in intervals, theGroup
recognises such parts as individual assetswith specific useful lives and depreciation, respectively. Likewise,
when a major inspection is performed, its cost is recognised in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. All other repair andmaintenance costs
are recognised inprofit or loss as incurred.
Depreciationof anasset beginswhen it is available for useand is computedona straight-linebasisover the
estimateduseful lifeof the asset as follows:
Leasehold land andbuildings
– over remaining terms of lease
Leasehold improvements
– 5 to7 years
Furniture and fittings
– 5 years
Officeequipment
– 3 to5 years
Motor vehicles
– 4 to5 years
Plant andequipment
– 3 to10 years
Vessels
– 20 to25 years
Assets under construction arenot depreciated as these assets arenot yet available for use.
Fullydepreciatedassets still inuseare retained in the financial statementsuntil theyareno longer inuseand
no further charge for depreciation ismade in respect of these assets.
The carrying value of property, plant and equipment are reviewed for impairment when events or changes
incircumstances indicate that thecarrying valuemaynot be recoverable.
The residual value, useful lifeanddepreciationmethodare reviewedat each financial year-endandadjusted
prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is
included in theprofit or loss in the year the asset is derecognised.
