Financial Statements - Mewah Group
Financial Statements - Mewah Group
Financial Statements - Mewah Group
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MEWAH INTERNATIONAL INC.<br />
ANNUAL REPORT 2011<br />
Notes to the <strong>Financial</strong> <strong>Statements</strong><br />
For the financial year ended 31 December 2011<br />
2. Significant accounting policies (continued)<br />
2.4 Property, plant and equipment (continued)<br />
(a)<br />
Measurement (continued)<br />
(i)<br />
Property, plant and equipment (continued)<br />
Increase in carrying amount arising from revaluation, including currency translation differences, are recognised<br />
in the asset revaluation reserve, unless they offset previous decreases in the carrying amounts of the same<br />
asset, in which case, they are recognised in profit or loss. Decreases in carrying amounts that offset previous<br />
increases of the same asset are recognised against the asset revaluation reserve. All other decreases in carrying<br />
amounts are recognised as a loss in the statement of comprehensive income.<br />
The <strong>Group</strong> on 1 January 2007 has elected to adopt FRS 101 exemption to deem the previous revaluation of<br />
certain property, plant and equipment as deemed cost (Note 18(c)).<br />
(ii)<br />
Components of costs<br />
The cost of an item of property, plant and equipment initially recognised includes its purchase price and<br />
any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be<br />
capable of operating in the manner intended by management. Cost also includes borrowing costs that are<br />
directly attributable to the acquisition, construction or production of a qualifying asset (refer to Note 2.8 on<br />
borrowing costs).<br />
(b)<br />
Depreciation<br />
Depreciation is calculated using the straight-line method to allocate their depreciable amounts over their estimated<br />
useful lives. The annual rates of depreciation are as follows:<br />
Leasehold land and buildings<br />
Amortised over the period of leases (30 to 99 years)<br />
Freehold buildings 2%<br />
Plant and equipment 5%<br />
Furniture, fixtures and office equipment 5% to 20%<br />
Motor vehicles 20%<br />
Freehold land and capital expenditure in progress are stated at cost and not depreciated.<br />
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed,<br />
and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised<br />
in profit or loss when the changes arise.<br />
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