Sun Art Retail Group Limited - TodayIR.com
Sun Art Retail Group Limited - TodayIR.com
Sun Art Retail Group Limited - TodayIR.com
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)<br />
(i)<br />
Other property, plant and equipment (continued)<br />
(ii)<br />
Depreciation<br />
Depreciation is calculated to write off the cost of items of property, plant and<br />
equipment, less their estimated residual value, if any, using the straight line method<br />
over their estimated useful lives as follows:<br />
• Buildings 10-30 years<br />
• Leasehold improvements 5-20 years<br />
• Store equipment 4-10 years<br />
• Office equipment 3-5 years<br />
• Motor vehicles 5-8 years<br />
Leased assets are depreciated over the shorter of the lease term and their useful lives<br />
unless it is reasonably certain that the <strong>Group</strong> will obtain ownership by the end of the<br />
lease term. No depreciation is provided on construction in progress.<br />
Where parts of an item of property, plant and equipment have different useful lives,<br />
the cost of the item is allocated on a reasonable basis between the parts and each<br />
part is depreciated separately.<br />
Depreciation methods, useful lives and residual values are reviewed annually.<br />
(j)<br />
Intangible assets (other than goodwill)<br />
Intangible assets that are acquired by the <strong>Group</strong> are stated at cost less accumulated<br />
amortisation and impairment losses (see note 1(l)).<br />
Amortisation is charged to profit or loss on a straight-line basis over the estimated useful<br />
lives of intangible assets, from the date that they are available for use, as follows:<br />
• Software 3 years<br />
Both the period and method of amortisation are reviewed annually.<br />
<strong>Sun</strong> <strong>Art</strong> <strong>Retail</strong> <strong>Group</strong> <strong>Limited</strong><br />
Annual Report 2012<br />
63