Annual Report 2009 - Greentown China Holdings Limited

Notes to the Consolidated Financial Statements
For The Year Ended 31 December 2009
15. PROPERTY, PLANT AND EQUIPMENT (Continued)
The above items of property, plant and equipment other than construction in progress are depreciated on a
straight-line basis at the following rates per annum:
Hotel buildings
Over the shorter of the term of the land use rights or 40 years
Land and buildings
Over the shorter of the term of the land use rights or 20 years
Leasehold improvements
Over the shorter of the lease term or five years
Machinery 10% to 33 1 /3%
Furniture, fixtures and equipment 10% to 33 1 /3%
Transportation equipment 10% to 20%
During 2008, the Group engaged DTZ Debenham Tie Leung Limited, independent qualified professional valuers
not connected with the Group, to conduct a review of the Group’s hotel buildings and determined that one of
those buildings was impaired due to the economic downturn and the performance of the hotel building being
adversely affected. Accordingly, an impairment loss of RMB53,000,000 was recognised in 2008 in respect of hotel
buildings. The recoverable amount of the relevant hotel building has been determined on the basis of its value in
use. The discount rate adopted in measuring the amount of value in use of the relevant hotel building was 10%.
The Group again engaged DTZ Debenham Tie Leung Limited to update their review of the Group’s hotel
buildings through 31 December 2009 and no significant changes have been identified.
The land and buildings shown above are located on:
2009 2008
RMB’000 RMB’000
Land in the PRC:
Medium-term lease 50,194 54,509
Details of the hotel buildings, land and buildings and construction in progress pledged to secure banking
facilities granted to the Group are disclosed in Note 36.
16. INVESTMENT PROPERTY
RMB’000
FAIR VALUE
At 1 January 2008 26,052
Decrease in fair value recognised in profit or loss (1,052)
At 31 December 2008 and 2009 25,000
The fair value of the Group’s investment property at 31 December 2008 and 2009 have been arrived at on the
basis of a valuation carried out on that date by DTZ Debenham Tie Leung Limited, independent qualified
professional valuers not connected with the Group. The professional valuers from DTZ Debenham Tie Leung
Limited are members of the Hong Kong Institute of Surveyors. The valuation was arrived at by reference to
market evidence of transaction prices for similar properties.
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Greentown China Holdings Limited Annual Report 2009