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annual report | 2012 Gunung Capital Berhad (330171-P)<br />
56<br />
NOTES TO THE FINANCIAL STATEMENTS (cont’d)<br />
31 DECEMBER 2012<br />
2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)<br />
2.4 Summary of Significant Accounting Policies (cont’d)<br />
(e) Property, Plant and Equipment (cont’d)<br />
The residual values, useful lives and depreciation method are reviewed at each financial year end to ensure<br />
that the amount, method and period of depreciation are consistent with previous estimates and the expected<br />
pattern of consumption of the future economic benefits embodied in the items of the property, plant and<br />
equipment.<br />
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits<br />
are expected from its use or disposal. Any gain or loss arising from de-recognition of the assets is included in<br />
the income statement in the year in which the assets is derecognised.<br />
(f) Investment Properties<br />
Investment properties consist of land and buildings held for capital appreciation or rental purpose and not<br />
occupied or only an insignificant portion is occupied for use or in the operations of the Group. Investment<br />
properties are treated as non-current investment and are measured initially at cost, including transaction<br />
costs. The carrying amount included the cost of replacing part of an existing investment property at the<br />
time that cost is incurred if the recognition criteria are met and excluded the costs of day-to-day servicing of<br />
investment properties. Fair value is arrived at by reference market evidence of transaction prices for similar<br />
properties and is performed by independent professional valuers.<br />
Gain or losses arising from changes in the fair values of investment properties are recognised in the income<br />
statements in the year in which they arise.<br />
Investment properties are derecognised when either they have been disposed or when the investment property<br />
is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains<br />
or losses on the retirement or disposal of an investment property are recognised in income statement in the<br />
year in which they arise.<br />
Transfers are made to or from investment property only when there is a change in use. For a transfer from<br />
investment property to owner-occupied property, the deemed cost for subsequent accounting is the fair<br />
value at the date of change in use. For a transfer from owner-occupied property to investment property, the<br />
property is accounted for in accordance with accounting policy for property, plant and equipment set out in<br />
Note 2.4(e) up to the date of change in use.<br />
(g) Financial Assets<br />
Financial assets are recognised in the statement of financial position when, and only when, the Group and<br />
the Company become a party to the contractual provisions of the financial instrument. Financial assets are<br />
classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity<br />
investments or available-for-sale financial assets, as appropriate.<br />
Financial assets are initially recognised at fair value plus directly attributable transaction cost, except for<br />
financial assets at fair value through profit and loss, which are recognised at fair value. The Group determines<br />
the classification of its financial assets after initial recognition and where appropriate, re-evaluates this<br />
designation at each reporting period.