200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 2. Material accounting policy information (cont'd) 2.9 Investments in joint ventures and associated company 2.10 Property, plant and equipment Leasehold land 1.25% Buildings 2% - 10% Plant, machinery and motor vehicles 10% - 33.33% Furniture and equipment 10% - 20% 2.11 Investment properties Capital work-in-progress included in property, plant and equipment are not depreciated as these assets are not yet available for use. Investments in associated company and joint ventures are accounted in the consolidated statements by the equity method of accounting. Distributions received from associated company and joint ventures reduce the carrying amount of the investment. In the Company's separate financial statements, investments in associated company and joint ventures are stated at cost less impairment losses. Unrealised gains on transactions between the Group and its associated company or joint ventures are eliminated to the extent of the Group's interest in the associated company or joint ventures. Unrealised losses are eliminated unless the transaction provides evidence of impairment of the asset transferred. The Group holds interests in joint ventures and associated company as disclosed in Note 16 and 17. Quarry development expenditure consists of expenditure incurred to construct infrastructure to facilitate the quarry operations. Quarry development expenditure is amortised over 5 years. Depreciation is charged to profit or loss on a straight-line method over the estimated useful lives of the investment properties. The estimated useful lives of the investment properties are 50 years. Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation on other property, plant and equipment is computed on a straight-line basis over the estimated useful lives of the assets as follows: Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and any accumulated impairment loss. All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. - 30 - NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024 122
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