Change - S P Setia Berhad

112
Annual report 2008
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2008
15. PROPERTY DEVELOPMENT COSTS
Group
Company
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Freehold land at cost 597,950 394,892 – –
Leasehold land at cost 21,841 47 – –
Development and construction costs 2,092,976 1,655,981 – –
Costs recognised as an expense in previous years (1,852,719) (1,335,267) – –
At 1 November 860,048 715,653 – –
Costs transferred (to)/from land held for
property development (see note 5)
– freehold land at cost 56,694 41,252 – –
– leasehold land at cost (6,650) 14,817 – –
– development costs 27,303 7,933 – –
Costs transferred from investment properties
(see note 4)
– freehold land – 18,822 – –
Costs incurred during the financial year
– freehold land at cost 1,390 180,841 – –
– leasehold land at cost – 6,977 – –
– development and construction costs 600,305 434,483 – –
Exchange differences
– development land at cost 319 – – –
679,361 705,125 – –
Costs recognised as an expense in the current year (740,010) (557,975) – –
Transferred to inventories (13,137) (2,755) – –
At 31 October 786,262 860,048 – –
Property development costs included above at a carrying amount of RM633,893,000 (2007 : RM583,577,000), have been charged
to banks to partially secure the long term loans, revolving credit and bank overdrafts referred to in notes 26, 32 and 33 below.
Included under development and construction costs is interest expense of RM19,670,000 (2007 : RM15,965,000) incurred during
the financial year.