Page 140 - Urban Renewal Authority 2023-24 Annual Report

NOTES TO THE FINANCIAL STATEMENTS

(expressed in Hong Kong Dollars)

6. Operating deficit before income tax (Continued)

Operating deficit before income tax is arrived at after charging/(crediting) the following items: (Continued)

(a) Other items: (Continued)

2024 2023

$’000 $’000
Impairment on properties
– Provision for impairment on properties held for sale 2,060 4,398
– Write back of provision for impairment on property,
plant and equipment (14,408) (42,776)
– Provision for impairment on properties under development 3,101,600 3,074,000

3,089,252 3,035,622

Interest expenses
– Interest on lease liabilities 3,564 1,425
– Less: Interest on lease liabilities capitalised (2,497) (786)

1,067 639

– Interest expenses on debt securities issued 19,992 30,914
– Less: Interest expenses capitalised # (19,992) (30,914)

– –

1,067 639

* Including salaries and other benefits of $488,010,000 (2022/23: $457,900,000) and contribution
to provident fund scheme of $35,414,000 (2022/23: $32,034,000).

^ Excluding depreciation of $942,000 (2022/23: $942,000) and interest expenses of $35,000
(2022/23: $58,000) for properties leased for own use.

# The borrowing costs have been capitalised at rates ranging from 2.15% to 3.85% per annum
(2022/23: 2.15% to 3.85% per annum).

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