Annual Report - QuamIR
Annual Report - QuamIR Annual Report - QuamIR
Notes to the Consolidated Financial Statements (Continued) 19 Intangible assets (Continued) Impairment tests for goodwill Goodwill is allocated to the Group’s cash-generating units identified according to country of operation and business segment. For the purpose of impairment testing, the recoverable amount of the business unit is determined based on value-in-use calculations. The key assumptions adopted for growth rates and discount rates used in the value-in-use calculation is based on management best estimates. In 2010, the calculation used pretax cash flow projections based on financial budgets approved by management covering a 12-year period cash flow and based on a discount rate of 5.75% to 10.04% taking into account the risk level of the business unit. Growth rates with range from 3% to 10% were determined by considering both internal and external factors. 20 Properties under development 19 5.75%10.04% 3%10% 20 Group 2011 2010 HK$ Million HK$ Million Properties under development comprise: Construction costs and capitalised expenditure 870.4 431.8 Amortisation of prepaid land lease payments 46.7 24.5 917.1 456.3 The properties under development are all located in the Mainland China. At 31 December 2011, properties under development with carrying value of HK$490.0 million (2010: HK$211.8 million) was pledged as securities for the Group’s borrowings (Note 36). 490,000,000 211,800,000 36 146 HKC (Holdings) Limited • Annual Report 2011
Notes to the Consolidated Financial Statements (Continued) 21 Investments in subsidiaries and amounts due from subsidiaries 21 2011 2010 HK$ Million HK$ Million Unlisted shares, at cost 224.6 215.4 Provision for impairment losses (57.7) (47.4) 166.9 168.0 Amounts due from subsidiaries 9,836.4 10,214.1 Provision for impairment losses (357.7) (52.0) 9,478.7 10,162.1 9,645.6 10,330.1 Amounts due from subsidiaries are unsecured, interest free, and repayable within the next twelve months. Their carrying amounts approximate their fair values. The balances are mainly denominated in Hong Kong dollars. The same was noted in 2010. Particulars of the principal subsidiaries are set out on pages 184 to 190. 22 Interests in associated companies 184190 22 2011 2010 HK$ Million HK$ Million Group’s share of net assets 1,028.4 904.7 Amounts due from associated companies, net 90.2 678.9 1,118.6 1,583.6 Amounts due from associated companies are unsecured, interest free and not repayable within the next twelve months. Their carrying amounts approximate their fair values. The balances are mainly denominated in Hong Kong dollars. The same was noted in 2010, except for the balances were mainly denominated in Renminbi. • 147
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Notes to the Consolidated Financial Statements (Continued)<br />
<br />
19 Intangible assets (Continued)<br />
Impairment tests for goodwill<br />
Goodwill is allocated to the Group’s cash-generating units identified<br />
according to country of operation and business segment. For the<br />
purpose of impairment testing, the recoverable amount of the<br />
business unit is determined based on value-in-use calculations. The<br />
key assumptions adopted for growth rates and discount rates used in<br />
the value-in-use calculation is based on management best estimates.<br />
In 2010, the calculation used pretax cash flow projections based on<br />
financial budgets approved by management covering a 12-year period<br />
cash flow and based on a discount rate of 5.75% to 10.04% taking into<br />
account the risk level of the business unit. Growth rates with range from<br />
3% to 10% were determined by considering both internal and external<br />
factors.<br />
20 Properties under development<br />
19 <br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
5.75%10.04%<br />
3%10%<br />
<br />
20 <br />
Group<br />
<br />
2011 2010<br />
<br />
HK$ Million HK$ Million<br />
<br />
Properties under development comprise: <br />
Construction costs and capitalised expenditure 870.4 431.8<br />
Amortisation of prepaid land lease payments 46.7 24.5<br />
917.1 456.3<br />
The properties under development are all located in the Mainland<br />
China.<br />
At 31 December 2011, properties under development with carrying<br />
value of HK$490.0 million (2010: HK$211.8 million) was pledged as<br />
securities for the Group’s borrowings (Note 36).<br />
<br />
<br />
490,000,000 <br />
211,800,000<br />
36<br />
146 HKC (Holdings) Limited • <strong>Annual</strong> <strong>Report</strong> 2011