Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.11 Intangible assets (Continued)
(b) Concession rights
The costs incurred for the construction or upgrade
work or the acquisition of the toll road under the service
concession arrangements of the Group with relevant local
governments are accounted for an intangible asset if the
Group receives a right to charge users of the toll road.
2
2.11
(b)
These expenditures are amortised on an units-of-usage
basis, making reference to the proportion of actual traffic
volume achieved for a particular period over the total
projected traffic volume throughout the periods within
which the Group is granted the rights to operate the
toll road. The total projected volume of the respective
concession right is reviewed regularly with reference to
both internal and external sources of information and
appropriate adjustments are made should there be a
material change.
Land use rights acquired in conjunction with the service
concession arrangement which the Group has no
discretion or latitude to deploy for other services other than
the use in the service concession are treated as intangible
assets.
(c)
Other intangible assets
Other intangible assets acquired in a business combination
are recognised at fair value at the acquisition date. Other
intangible assets have a finite useful life and are carried
at cost less accumulated impairment and amortisation.
Amortisation is calculated using the straight-line method
over their estimated useful lives of five years.
(c)
94 HKC (Holdings) Limited • Annual Report 2011