Page 137 - URA Annual Report 2021-22

(expressed in Hong Kong Dollars)
2. Significant accounting policies (Continued)
(g) Property, plant and equipment (Continued)
Amortisation on interests in leasehold land and depreciation on other assets is calculated to write off
their costs less residual values, if Interests in leasehold land Buildings
Leasehold improvements
Plant and machinery
Motor vehicles
Furniture and office equipment
Properties leased for own use
The assets’ residual values and each reporting period.
any, over their anticipated useful lives on a straight line basis as follows:
– Over the period of the unexpired lease
– 50 years or over the period of the unexpired lease if less than 50 years
– Office: Over 10 years or the life of the respective lease, whichever is the shorter
Non-office: Over the period of the unexpired terms of the leases if less than 50 years
– 10 years
– 4 years
– 3 to 5 years
– Over the period of the lease
useful lives are reviewed, and adjusted if appropriate, at the end of
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see Note 2(h)).
Gains and losses on disposals are determined by comparing net disposal proceeds with carrying amount. These are included in profit or loss.
(h) Credit losses and impairment of assets
(i) Credit losses from financial instruments and lease receivables
The Group recognises a loss allowance for expected credit loss (“ECLs”) on the following items:
– financial assets measured at amortised cost (including cash and bank balances, trade receivables, investments at amortised cost, financial assets included in prepayments, deposits and other receivables, building rehabilitation loans and amounts due from joint development projects); and
– lease receivables.
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