NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 SECTION 4: FINANCIAL PERFORMANCE 164 3. PROPERTY, PLANT AND EQUIPMENT (CONT’D) Material accounting policy information (a) Recognition and measurement All property, plant and equipment, are measured at cost less accumulated depreciation and less any impairment losses. The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Group and the Company and the cost of the item can be measured reliably. (b) Subsequent expenditure Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group and the Company. (c) Depreciation Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment from the date that they are available for use. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use. The estimated useful lives for the current and comparative periods are as follows:- Freehold Land and Buildings 2% Motor Vehicles 20% Furniture and Fittings 10%-20% Renovation 10%-20% Computer Equipment and Software 14%-50% Plant and Machinery 15%-20% Office Equipment 10%-20% Other Assets 10%-20% 4. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES Right-of-use assets The Group has lease contracts for various items of motor vehicles, retail outlets and premises used for its operations purposes. Leases of motor vehicles generally have lease terms between 2 to 5 years (2023: 2 to 5 years), retail outlets generally have lease term about 2 to 15 years (2023: 2 to 15 years) and premises generally about 3 to 6 years (2023: 3 to 6 years). The Group also has certain leases of retail outlets and premises with lease term of 12 months. The Group applies the ‘short-term lease’ recognition exemptions for these leases.
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