BUILDING LANDMARKS, CHARTING GROWTH
203
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
3 SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.5 Intangible assets and goodwill
(i)
Goodwill
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For the measurement of
goodwill at initial recognition, see note 3.1(i).
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses. In respect of associates and joint ventures,
the carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on
such an investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of the
associates and joint ventures.
(ii)
Other intangible assets
Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less
accumulated amortisation and accumulated impairment losses.
(iii)
Amortisation
Amortisation is calculated based on the cost of the asset, less its residual value.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets,
other than goodwill, from the date that they are available for use. The estimated useful lives for the current period
and comparative years are as follows:
• Asset management agreements
10 years
• Property management agreements
10 years
Amortisation methods and useful lives are reviewed at the end of each reporting period and adjusted if appropriate.
3.6 Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or for both, but not for
sale in the ordinary course of business, use in the production or supply of goods or services or for administrative
purposes. Investment properties acquired through interests in subsidiaries, are accounted for as an acquisition of asset.
Investment properties are measured at cost on initial recognition and subsequently at fair value with any change therein
recognised in profit or loss.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of
self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable
to bringing the investment property to a working condition for their intended use and capitalised borrowing costs.
Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from
disposal and the carrying amount of the item) is recognised in profit or loss.
Property that is being constructed for future use as investment property is accounted for at fair value.
