2011 Annual Report - the solid group inc website

- 15 -
For investments that are actively traded in organized financial markets, fair value is
determined by reference to stock exchange-quoted market bid prices at the close of business
on the end of reporting period. For investments where there is no quoted market price, fair
value is determined by reference to the current market value of another instrument which is
substantially the same or is calculated based on the expected cash flows of the underlying net
asset base of the investment.
Non-compounding interest and other cash flows resulting from holding financial assets are
recognized in profit or loss when earned, regardless of how the related carrying amount of
financial assets is measured.
The financial assets are derecognized when the rights to receive cash flows from the financial
instruments expire or when substantially all of the risks and rewards of ownership have been
transferred.
2.6 Merchandise Inventories and Supplies
Inventories are valued at the lower of cost and net realizable value. Costs incurred in
bringing each product to its present location and condition is determined as follows:
(a)
(b)
Raw materials and service parts, supplies and others – on a moving average method. The cost
of raw materials, service parts, supplies and others include all costs directly attributable
to the acquisitions, such as the purchase price, import duties and other taxes that are
not subsequently recoverable from taxing authorities.
Merchandise and finished goods, and work-in-process – on a moving average method; cost
includes direct materials and labor and a proportion of manufacturing overheads based
on normal operating capacity.
Net realizable value of finished goods and work-in-process inventories is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and the
estimated costs necessary to make the sale. Net realizable value of raw materials, service
parts, supplies and others is the current replacement cost.
2.7 Real Estate Inventories
Real estate inventories consist of the following:
(a)
Land and Land Development Costs
Land and land development costs includes the acquisition cost of raw land intended for
future development and sale, including other costs and expenses incurred to effect the
transfer of property title are included in this account.
(b)
Property Development Costs
Property development costs include the cost of land used as a building site for a
condominium project and the accumulated costs incurred in developing and
constructing the property for sale.