BUILDING LANDMARKS, CHARTING GROWTH
201
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
3 SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.3 Financial instruments
(continued)
(iii)
Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares are
recognised as a deduction from equity, net of any tax effects.
Preference share capital
Preference share capital is classified as financial liability if it is redeemable on specific date or at the option of the
shareholders, or if dividend payments are not discretionary. Non-discretionary dividends thereon are recognised as
interest expense in profit or loss as accrued.
Distribution of non-cash assets to owners of the Company
The Group measures a liability to distribute non-cash assets as a dividend to the owners of the Company at the fair
value of the assets to be distributed. The carrying amount of the dividend is remeasured at each reporting date and
at the settlement date, with any changes recognised directly in equity as adjustments to the amount of the
distribution. On settlement of the transaction, the Group recognises the difference, if any, between the carrying
amount of the assets distributed and the carrying amount of the liability in profit or loss.
(iv)
Intra-group financial guarantees in the separate financial statements
Financial guarantees are financial instruments issued by the Company that require the issuer to make specified
payments to reimburse the holder for the loss it incurs because a specified debtor fails to meet payment when due
in accordance with the original or modified terms of a debt instrument.
Financial guarantees are recognised initially at fair value and are classified as financial liabilities. Subsequent to initial
measurement, the financial guarantees are stated at the higher of the initial fair value less cumulative amortisation
and the amount that would be recognised if they were accounted for as contingent liabilities. When financial
guarantees are terminated before their original expiry date, the carrying amount of the financial guarantee is
transferred to profit or loss.
3.4 Plant and equipment
(i)
Recognition and measurement
Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes:
• the cost of materials and direct labour;
• any other costs directly attributable to bringing the assets to a working condition for their intended use;
• when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of
dismantling and removing the items and restoring the site on which they are located; and
• capitalised borrowing costs.
