notes to the financial statements - Far East Orchard Limited

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2008
14. Development properties (continued)
(d) Interest capitalised during the year was $13,000 (2007: $462,000). The weighted average effective rate of interest
capitalised was 2.73% (2007: 5.44%) per annum.
(e) As at 31 December 2008, development properties with net book value of $158,685,000 (2007: $152,186,000) were
pledged as securities for banking facilities of the Group (Note 25).
(f) Details of the development properties of the Group as at 31 December 2008 are as follows:
50
Unsold gross
floor area
(Sq. metres) Description and location
Held by subsidiaries:
Manor Houses:
2,631 Leasehold residential land on
a 99-year lease from 8 August
1994 at Kew Drive,
Singapore
Held by joint venture
company:
Orwin Development Limited
Floridian:
26,298 Freehold residential land at
Bukit Timah Road,
Singapore
CSC - Certificate of statutory completion
(g) Completion of construction method
Purpose of
development
Bungalows
for sale
Condominium
housing
development
Stage of
completion/
expected date
of completion
CSC obtained
(15 June 1998 to
18 June 1998)
Group’s
effective
interest in
the property Existing use
100% Residential
Main building 60% Property under
contract
awarded. Phase 1
piling completed
development
As stated in Note 2.5, the Group recognises profit from the sale of development properties using the percentage of
completion method. Had the completion of construction method been adopted, there are no financial effects as
required under Recommended Accounting Practice 11, Pre-completion Contracts For The Sale of Development
Property on the consolidated financial statements of the Group for the financial years ended 31 December 2008
and 31 December 2007 as no revenue and cost are recognised since the main construction had not commenced
at 31 December 2007, and construction is in-progress at 31 December 2008.
ANNUAL REPORT 2008 ORCHARD PARADE HOLDINGS LIMITED