DELEUM BERHAD UNISON IN DIVERSITY - ChartNexus

68 Unison in Diversity
Summary of Significant Accounting Policies (continued)
For the Financial Year Ended 31 December 2009
E PROPERTY, PLANT AND EQUIPMENT (continued)
Freehold land is not depreciated as it has an infinite life. Other property, plant and equipment are depreciated on
the straight line basis to write off the cost of each asset to their residual values over their estimated useful lives at the
following annual rates:
Freehold building 2%
Long term leasehold buildings 2% - 5%
Office equipment, furniture and fittings 10 - 33 1/3%
Renovations 20%
Plant, machinery and other equipment 10 - 33 1/3%
Motor vehicles 20%
Assets under construction represent plant and building in progress and are not depreciated until they are ready for their
intended use.
Useful lives of assets are reviewed and adjusted where appropriate at balance sheet date. A subsidiary company
revised the useful life of wireline equipment from between 5 to 7 years to 10 years effective from 1 January 2009. The
revision was accounted for as a change in accounting estimate and as a result, the depreciation charged for the year
ended 31 December 2009 was reduced by RM2,826,494 for the Group.
At each balance sheet date, the Group assesses whether there is any indication of impairment. If such indications exist,
an analysis is performed to assess whether the carrying amount of the asset is fully recoverable. A write down is made
if the carrying amount exceeds the recoverable amount (see accounting policy Note R on impairment of non-financial
assets).
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in the
income statement.
F INVESTMENT PROPERTIES
Investment properties, comprising principally land and office buildings, are held for long term rental yields or for
capital appreciation or both, and are not occupied by the Group.
Investment properties are stated at cost less any accumulated depreciation and impairment losses. Investment properties
are depreciated on the straight line basis to write off the costs to their residual values over their estimated useful lives
at the rate of 2% per annum.
Useful lives of investment properties are reviewed, and are adjusted if appropriate at each balance sheet date.
At each balance sheet date, the Group assesses whether there is any indication of impairment. If such indications exist,
an analysis is performed to assess whether the carrying amount of the investment property is fully recoverable. A write
down is made if the carrying amount exceeds the recoverable amount (see accounting policy Note R on impairment
of non-financial assets).
On disposal of an investment property, or when it is permanently withdrawn from use and no future economic benefits
are expected from its disposal, it shall be de-recognised (eliminated from the balance sheet). The difference between
the net disposal proceeds and the carrying amount is recognised in income statement in the financial year of the
retirement or disposal.