2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.8 Property, plant and equipment (continued)
Freehold land is not depreciated as it has an infinite life. Other property, plant and equipment are depreciated on the
straight line method to allocate the cost or the revalued amounts, to their residual values over their estimated useful
lives, summarised as follows:
Buildings
2%
Renovation
8% – 20%
Medical and other equipment
7.5% – 33.33%
Furniture and fittings
10% – 20%
Motor vehicles
10% –20%
Computers
10% – 33%
Capital work-in-progress included in plant and equipment are not depreciated as these assets are not yet available for
use.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial year-end, and adjusted
prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the profit or loss in the
year the asset is derecognised.
2.9 Investment properties
Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition,
investment properties are measured at fair value which reflects market conditions at the reporting date. Fair value is
arrived at by reference to market evidence of transaction prices for similar properties and is performed by registered
independent valuers having an appropriate recognised professional qualification and recent experience in the location
and category of the properties being valued. Gains or losses arising from changes in the fair values of investment
properties are included in profit or loss in the year in which they arise.
A property interest under an operating lease is classified and accounted for as an investment property on a property-
by-property basis when the Group holds it to earn rentals or for capital appreciation or both. Any such property interest
under an operating lease classified as an investment property is carried at fair value.
Investment properties are derecognised when either they have been disposed of or when the investment property is
permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the
retirement or disposal of an investment property is recognised in profit or loss in the year of retirement or disposal.
Transfers are made to or from investment property only when there is a change in use. For a transfer from investment
property to owner-occupied property, the deemed cost for subsequent accounting is the fair value at the date of change
in use. For a transfer from owner-occupied property to investment property, the property is accounted for in accordance
with the accounting policy for property, plant and equipment set out in Note 2.8 up to the date of change in use.
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NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
