2. Significant accounting policies
(continued)
(c) Property, plant and equipment
(continued)
(i) Recognition and measurement
(continued)
The gain and loss on disposal of an item of property, plant and equipment is determined by
comparing the proceeds from disposal with the carrying amount of property, plant and
equipment and is recognised net within “other income” or “administrative expenses” respectively
in profit or loss.
(ii) Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is
recognised in the carrying amount of the item if it is probable that the future economic
benefits embodied within the component will flow to the Group or the Company, and its
cost can be measured reliably. The carrying amount of the replaced component is
derecognised to profit or loss. The costs of the day-to-day servicing of property, plant
and equipment are recognised in the profit or loss as incurred.
(iii) Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant
components of individual assets are assessed, and if a component has a useful life that
is different from the remainder of that asset, then that component is depreciated separately.
Depreciation is recognised in the profit or loss on a straight-line basis over the estimated
useful lives of each component of an item of property, plant and equipment. Leased assets
are depreciated over the shorter of the lease term and their useful lives unless it is
reasonably certain that the Group will obtain ownership by the end of the lease term.
Assets under construction are not depreciated until the assets are ready for their intended use.
The estimated useful lives for the current and comparative periods are as follows:
Commercial buildings
50 years
Other buildings
20 years
Furniture, fittings and equipment
5 - 10 years
Infrastructure works
20 years
Plant and machinery
5 - 10 years
Motor vehicles
5 years
Depreciation methods, useful lives and residual values are reviewed and adjusted as
appropriate at the end of the reporting period.
Notes to the Financial Statements
SARAWAK PLANTATION BERHAD
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Annual Report 2014
