Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

9 Tangible assets
2005
Freehold Leasehold
land & buildings & Plant & Furniture &
buildings improvements machinery equipment Total
US$m US$m US$m US$m US$m
Net book value at 1st January 386.3 273.1 46.5 46.2 752.1
Translation differences (25.3) (19.6) (1.7) (2.5) (49.1)
Additions 3.2 4.7 4.1 36.6 48.6
Disposals – – – (0.1) (0.1)
Transfer-in – – – 1.9 1.9
Reclassification 16.4 – (16.4) – –
Depreciation charge (refer note 2) (3.6) (10.4) (3.3) (12.7) (30.0)
Revaluation surplus
Classified as non-current asset held for sale
27.8 – – – 27.8
(refer note 23) – (66.2) (0.7) (0.3) (67.2)
Net book value at 31st December 404.8 181.6 28.5 69.1 684.0
Cost or valuation 415.0 247.5 71.0 161.3 894.8
Accumulated depreciation (10.2) (65.9) (42.5) (92.2) (210.8)
404.8 181.6 28.5 69.1 684.0
2004
Net book value at 1st January 322.1 276.5 43.3 45.2 687.1
Translation differences 20.7 5.7 1.2 0.8 28.4
Additions 9.9 2.6 6.9 12.6 32.0
Depreciation charge (refer note 2) (4.2) (9.2) (4.9) (12.4) (30.7)
Revaluation surplus/(deficit) 37.8 (2.5) – – 35.3
Net book value at 31st December 386.3 273.1 46.5 46.2 752.1
Cost or valuation 392.9 395.9 93.4 151.8 1,034.0
Accumulated depreciation (6.6) (122.8) (46.9) (105.6) (281.9)
386.3 273.1 46.5 46.2 752.1
The Directors have reviewed the carrying values of all properties at 31st December 2005 in consultation with
the Group’s independent valuers.The Directors are of the opinion that there is an increase in the fair value of all
properties of US$21.3 million net of deferred tax of US$6.5 million which has been taken to the capital reserves.
In 2004, a surplus of US$0.2 million was taken to the profit and loss account and a surplus of US$23.1 million net
of deferred tax of US$12.2 million was taken to the capital reserves.
The Group’s freehold properties and the building component of leasehold properties were revalued at
31st December 2004 by independent professionally qualified valuers. Fair value was determined using the
income capitalization approach and having reference to market-based evidence, which is the amount for which
the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an
arm’s length transaction as at the valuation date.
ANNUAL REPORT 2005 47