URA

116 (expressed in Hong Kong Dollars) NOTES TO THE FINANCIAL STATEMENTS 6. Operating surplus before income tax Operating surplus before income tax is arrived at after charging/(crediting) the following items: (a) Direct costs including: 2018 2017 $’000 $’000 Cost of properties under joint development projects 2,015,257 854,816 Cost of properties sold 94,065 1,498,628 (b) Administrative expenses including: 2018 2017 $’000 $’000 Staff costs* (excluding directors’ remuneration) 343,288 341,799 Operating lease charges in respect of rental of office premises 17,270 20,481 * Including salaries and other benefits of $319,957,000 (2016/17: $316,794,000) and contribution to provident fund scheme of $23,331,000 (2016/17: $25,005,000). (c) Other expenses including: 2018 2017 $’000 $’000 Rehabilitation and retrofit expenses 61,565 46,687 Revitalisation and preservation expenses 5,344 5,880 Outgoings in respect of preservation properties,  retained properties and rehousing units 49,695 37,172 Depreciation 56,128 44,705 Auditor’s remuneration  – Audit services 440 424  – Non-audit services 365 – (d) Impairment on properties and committed projects 2018 2017 $’000 $’000 Write back of provision for impairment on property,  plant and equipment (15,467) (53,396) Write back of provision on properties under development (510,100) (812,400) Provision for a committed project – 35,000 (525,567) (830,796)