NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 (CONT’D) 4. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) 4.3 INVESTMENTS IN SUBSIDIARIES Investments in subsidiaries including the fair value adjustments on inter-company loans at inception date and share options granted to employees of the subsidiaries, which are eliminated on consolidation, are stated in the separate financial statements of the Company at cost less impairment losses, if any. 4.4 INVESTMENTS IN ASSOCIATES Investments in associates are accounted for using the equity method in the consolidated financial statements of the Group. 4.5 PROPERTY, PLANT AND EQUIPMENT All items of property, plant and equipment are initially measured at cost. Subsequent to the initial recognition, all property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over the estimated useful lives. The principal annual depreciation rates are:- Vessels Over the remaining useful life of up to 25 years Vessel equipment 20% Dry docking expenditure 20% Motor vehicles 20% Office equipment 20% Renovation 20% Dry docking expenditure represents major inspection and overhaul costs and is depreciated to reflect the consumption of benefits, which are to be replaced or restored by the subsequent dry docking generally every five years. Capital work-in-progress represents vessel under construction and dry docking in progress. They are not depreciated until such time when the asset is available for use. 4.6 INVESTMENT PROPERTIES Investment properties are initially measured at cost. Subsequent to the initial recognition, the investment properties are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated using the straight-line method to allocate the depreciable amount over the estimated useful lives. The principal annual depreciation period is:- Building 50 years 174 KEYFIELD INTERNATIONAL BERHAD (Incorporated in Malaysia) | Registration No: 202001038989 (1395310 - M)
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