Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.9 Properties under development
Properties under development including the properties developed
for self use or resale comprises development cost of properties
and the costs paid to acquire land use rights which are stated at
the lower of cost and net realisable value.
2
2.9
Net realisable value takes into account the price ultimately
expected to be realised, less applicable variable selling expenses
and the anticipated costs to completion.
Development cost of properties comprises construction costs,
borrowing costs and professional fees incurred during the
development period. On completion, the properties under
development are transferred to completed properties held for
sale.
2.10 Construction in progress
All direct and indirect costs relating to the construction of
property, plant and equipment including borrowing costs during
the construction period are capitalised as the costs of the assets,
which are classified as construction in progress. On completion,
the construction in progress is transferred to property, plant
and equipment at cost less accumulated impairment losses. No
depreciation is provided on construction in progress.
2.11 Intangible assets
(a) Goodwill
Goodwill represents the excess of the cost of an acquisition
over the fair value of the Group’s share in net fair value
of net identifiable assets of the acquired subsidiary at the
date of acquisition. Goodwill on acquisitions of subsidiaries
is included in intangible assets. Separately recognised
goodwill is tested for impairment at every reporting period
end and carried at cost less accumulated impairment
losses. Impairment losses on goodwill are not reversed.
Gains and losses on the disposal of an entity include the
carrying amount of goodwill relating to the entity sold.
2.10
2.11
(a)
Goodwill is allocated to cash-generating units for the
purpose of impairment testing. The allocation is made to
those cash-generating units or groups of cash-generating
units that are expected to benefit from the business
combination in which the goodwill arose.
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