2012 TPSEA Annual Report - Serena Hotels

Notes to the Financial Statements (continued)
18 Property, plant and equipment – Group (continued)
In the opinion of the directors, there is no impairment of property, plant and equipment. Land and buildings for
Tourism Promotion Services (Kenya) Limited, Tourism Promotion Services (Tanzania) Limited & Tourism Promotion
Services (Zanzibar) Limited were all revalued on 31 December 2010 by independent professional valuers,
C.P.Robertson-Dunn for Kenya and H & R Consultancy Limited in Tanzania. Valuations were made on the basis of
earnings for existing use.
The book values of the properties were adjusted to the revaluations and the resultant surplus net of deferred income
tax was credited to the revaluation surplus in shareholders’ equity.
Capital work in progress is mainly in relation to capital projects being undertaken with respect to Kenyan and
Tanzanian lodges.
If the buildings, freehold and leasehold land were stated on the historical cost basis (adjusted for translation
differences), the amounts would be as follows
Group
2011 2010
Shs’000
Shs’000
Cost 6,083,433 5,300,995
Accumulated depreciation (2,084,780) (1,753,946)
Net book amount 3,998,652 3,547,049
19 Non-current receivables
Company
2011 2010
Shs’000
Shs’000
At start of the year 141,575 -
Advanced during the year 212,280 141,575
Repayment (353,855) -
At end of year - 141,575
All non-current receivables relate to advances to Tourism Promotion Services (Tanzania) Limited, a subsidiary of the
Group, and were due within 5 years from the statement of financial position date but were fully repaid during the
year. The interest rate on the advance was 11.8% per annum.
TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 73