TPSEAL 2010 Financial Results. - 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
2010 2009
Shs’000
Shs’000
Cost 5,300,995 4,017,498
Accumulated depreciation (1,753,946 ) (1,647,926)
Net book amount 3,547,049 2,369,572
19 Non-current receivables - COMPANY
2010 2009
Shs’000
Shs’000
At start of the year - -
Advanced during the year 141,575 -
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
are due within 5 years from the statement of financial position date. The interest rate on the advance is 11.8% per annum.
TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2010 73