perspective perspective - ChartNexus

138
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
20 PROPERTY DEVELOPMENT COSTS
for the financial year ended 31 December 2005
Group
2005 2004
RM’000 RM’000
At beginning of the financial year
Freehold land - at cost 85,777 30,084
- at valuation 78,393 17,026
Development costs incurred 295,143 271,926
Accumulated costs charged to income statement (68,029)
–––––––––––––––––––
(55,487)
–––––––––––––––––––
391,284 263,549
================= =================
Costs incurred during the financial year
Land acquired – 41,085
Development costs incurred 166,536 89,915
Transfer from property, plant and equipment – 32,815
Net transfer from land held for property development 28,531 46,608
Transfer to completed properties (13,495) (13,117)
Accumulated costs charged to income statement (141,008) (69,571)
––––––––––––––––––– –––––––––––––––––––
40,564 127,735
================= =================
At end of the financial year
Freehold land - at cost 95,801 85,777
- at valuation 72,966 78,393
Development costs incurred 348,101 295,143
Accumulated costs charged to income statement (85,020) (68,029)
––––––––––––––––––– –––––––––––––––––––
431,848 391,284
================= =================
The freehold land at valuation was transferred from “Property, plant and equipment” to “Property development costs” at its
carrying amounts. The Directors have applied the transitional provision issued by Malaysian Accounting Standards Board on
adoption of FRS 1162004 “Property, Plant and Equipment” (formerly known as MASB 15), which allows these assets to be stated at
their 1990 and 1996 valuations. Accordingly, the carrying amounts have not been updated.
Included in the development costs incurred during the financial year is interest capitalised amounting to RM10,553,962
(2004: RM3,548,130).
Property development costs with book value of RM116,083,329 (2004: RM85,549,303) have been pledged as security for borrowings
(Note 25).