Notes to the Financial Statements - Swissco Holdings Limited

Notes
to the Financial Statements
For the financial year ended 31 December 2009
2. Significant accounting policies (continued)
2.4 Property, plant and equipment (continued)
(c)
Depreciation (continued)
The residual values, estimated useful lives and depreciation method of property, plant and
equipment are reviewed, and adjusted as appropriate, at each balance sheet date. The effects of
any revision are recognised in profit or loss when the changes arise.
The vessels/barges are subject to overhauls at regular intervals. The inherent components of the
initial dry docking are determined based on the estimated costs of the next dry docking and are
separately depreciated over a period of 5 years in order to reflect the estimated interval between
two dry dockings. The costs of the dry dockings subsequently incurred are capitalised as additions
and the carrying amounts of replaced components of the vessel are written off to profit or loss.
(d)
Vessels-under-construction and building-under-construction
Vessels-under-construction and building-under-construction are stated at cost, which include the
progress billings paid in accordance with the construction contracts and other directly attributable
costs incurred during the construction period.
No depreciation is provided on vessels-under-construction and building-under-construction.
(e)
Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment that has already been recognised
is added to the carrying amount of the asset only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the item can be measured reliably.
All other repair and maintenance expense is recognised in profit or loss when incurred.
(f)
Disposal
On disposal of an item of property, plant and equipment, the difference between the disposal
proceeds and its carrying amount is recognised in profit or loss within ‘Other gains/(losses) - net’.
2.5 Investments in subsidiaries, joint ventures and associated companies
Investments in subsidiaries, joint ventures and associated companies are carried at cost less accumulated
impairment losses in the Company’s balance sheet.
On disposal of investments in subsidiaries, joint ventures and associated companies, the difference between
the disposal proceeds and the carrying amounts of the investments is recognised in profit or loss.
2.6 Impairment of non-financial assets
Property, plant and equipment
Investments in subsidiaries, joint ventures and associated companies
Property, plant and equipment and investments in subsidiaries, joint ventures and associated companies
are tested for impairment whenever there is any objective evidence or indication that these assets may be
impaired.
45 Annual Report 2009 Swissco International Limited