Singapore Press Holdings annual report 2011 Singapore Press ...

Notes to the
Financial StatementS
August 31, 2011
103
2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(g)
Development properties
Development properties are properties being developed for sale. Costs capitalised include cost
of land and other directly related development expenditure, including borrowing costs incurred in
developing the properties.
Sold development properties
All development properties held by the Group are sold.
Revenue and cost on development properties that have been sold are recognised using percentageof-completion
method. The percentage of completion is measured by reference to the development
costs incurred to-date to the estimated total development costs for the properties. When it is probable
that the estimated total costs will exceed the total revenue, the expected loss is recognised as an
expense immediately.
At the balance sheet date, the aggregated costs incurred plus the recognised profit (less recognised
loss) on each development property that has been sold are compared against the progress billings.
Where costs incurred plus recognised profits (less recognised losses) exceed progress billings, the
balance is presented as due from customers on development properties, within “trade receivables”.
Where progress billings exceed costs incurred plus recognised profits (less recognised losses),
the balance is presented as due to customers on development properties, within “trade payables”.
(h)
(i)
(j)
Borrowing costs
Borrowing costs are recognised in the income statement using the effective interest method except
for those costs that are directly attributable to borrowings acquired specifically for the construction
or development of properties [Notes 2(f) and 2(g)].
Investments in subsidiaries, associates and jointly-controlled entities
Investments in subsidiaries, associates and jointly-controlled entities are included in the Company’s
balance sheet at cost less accumulated impairment losses. On disposal of these investments, the
difference between disposal proceeds and the carrying amounts of the investments is recognised in
the income statement.
Financial assets
(i)
Classification
The Group classifies its financial assets in the following categories: at fair value through
profit or loss, loans and receivables, held-to-maturity, and available-for-sale. The classification
depends on the nature of the assets and the purpose for which the assets were acquired.
Management determines the classification of its financial assets on initial recognition.
• Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading, and those
designated at fair value through profit or loss at inception. A financial asset is classified
as held for trading if it is acquired principally for the purpose of selling in the short
term. Financial assets designated as fair value through profit or loss at inception are
those that are managed and their performances are evaluated on a fair value basis,
in accordance with a documented Group investment strategy. Derivatives are also
categorised as held for trading unless they are designated as hedges. Assets in this
category are presented as current assets if they are either held for trading or are
expected to be realised within 12 months after the balance sheet date.