Page 158 - URA Annual Report 2021-22

NOTES TO THE FINANCIAL STATEMENTS
(expressed in Hong Kong Dollars)
9. Properties under development
As at 31 March 2022, the properties under development are analysed as follows:
Cost, including Home Purchase Allowance (“HPA”) (Note (i)) At 1 April
Add: Additions during the year*
Less: Charged to profit or loss during the year
Transferred to property, plant and equipment Transferred to properties held for sale
At 31 March**
Provision for impairment at 31 March Balance as at 31 March
2022 $’000
33,287,263 5,987,345
(14,435,544) (2,151,097) (187,000)
22,500,967 (654,100)
21,846,867
2021 $’000
33,494,426 4,007,014
(740,860) (1,330,588) (2,142,729)
33,287,263 (723,900)
32,563,363
* The amount includes depreciation of $23,815,000 (31 March 2021: $22,351,000) and interest expense of $1,431,000 (31 March 2021: $1,909,000) for properties leased for own use.
** The amount includes accumulated interest and other borrowing costs capitalised of $243,524,000 (31 March 2021: $319,115,000).
As at 31 March 2022, the properties under development are analysed as follows:
Non-current portion
Current portion (development for sale)
Notes:
2022 $’000
20,701,475 1,145,392
21,846,867
2021 $’000
32,272,141 291,222
32,563,363
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(i) In March 2001, the Finance Committee of the Legislative Council approved, inter alia, the revised basis for calculating the HPA payable to owners of domestic properties and ex-gratia allowances payable to owners and owner-occupiers affected by land resumption. The relevant policies governing the Authority’s payment of HPA and ex-gratia allowances for properties acquired/resumed and the clearance of occupiers are based on the above framework which have resulted in a high cost base for the Group’s redevelopment projects.