NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024 (CONT’D) 4. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) 4.4 INVESTMENTS IN SUBSIDIARIES I nvestments in subsidiaries which are eliminated on consolidation, are stated in the separate financial statements of the Company at cost less impairment losses, if any. 4.5 INVESTMENTS IN JOINT VENTURES I nvestments in joint ventures are stated in the separate financial statements of the Company at cost less impairment losses, if any. The Group recognises its interest in the joint ventures using the equity method in the consolidated financial statements. 4.6 PROPERTY, PLANT AND EQUIPMENT All items of property, plant and equipment are initially measured at cost. S ubsequent to the initial recognition, all property, plant and equipment, other than freehold land, are stated at cost less accumulated depreciation and any accumulated impairment losses. F reehold land is not depreciated. Depreciation on other property, plant and equipment is calculated using the straightline method to allocate their depreciable amounts over the estimated useful lives. The principal annual depreciation rates are:- Buildings 2% Leasehold land and buildings Over the lease period of 98 years Office equipment, furniture and fittings 10% - 20% Plant and machinery 10% Motor vehicles 15% 4.7 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (a) Short-term Leases and Leases of Low-value Assets T he Group and the Company apply the “short-term lease” and “lease of low-value assets” recognition exemption. For these leases, the Group and the Company recognise the lease payments as an operating expense on a straight-line method over the term of the lease unless another systematic basis is more appropriate. (b) Right-of-use Assets R ight-of-use assets are initially measured at cost. Subsequent to the initial recognition, the right-of-use assets are stated at cost less accumulated depreciation and any accumulated impairment losses, and adjusted for any remeasurement of lease liabilities. T he right-of-use assets are depreciated using the straight-line method from the commencement date to the earlier of the end of the estimated useful lives of the right-of-use assets or the end of the lease term. FINANCIAL STATEMENTS 161 INTEGRATED ANNUAL REPORT 2024
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