2. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D.) 2.7 Property, plant and equipment (cont’d.) Freehold land has unlimited useful life and construction in-progress that are not yet available for use, are not depreciated. Bearer plants are classified as immature until it is available for harvest. At that point, bearer plants are measured at amortised cost and depreciated over their useful life. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: - Freehold buildings: 20 to 50 years - Leasehold buildings: 20 to 50 years - Golf course: 99 years - Plant and machineries: 5 to 20 years - Office furniture, fittings and equipment: 4 to 10 years - Motor vehicles: 5 years - Bearer plants: 25 years - Aircraft: 10 years The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. 2.8 Inventories Inventories are stated at the lower of costs and net realisable value. (a) Land held for property development Land held for property development consists of land where no development activities have been carried out or where development activities are not expected to be completed within the normal operating cycle. Such land is classified within non-current assets. Land held for property development is reclassified as property development costs at the point when development activities have commenced and where it can be demonstrated that the development activities can be completed within the normal operating cycle. (b) Property development costs The cost of land, related development costs common to entire development project and direct building costs less cumulative amounts recognised as expense in the profit or loss for property under development are carried in the statements of financial position as property development costs. The property development cost is subsequently recognised as an expense in profit or loss as and when the control of the inventory is transferred to the customer. Property development cost of unsold unit is transferred to completed development unit once the development is completed. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 AR 2025 | FINANCIAL STATEMENT & OTHER INFORMATION 264
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