Annual Report 2012 - singapore land limited

More documents

Recommendations

Info

54 Singapore Land Limited - Annual Report 2012 NOTES TO THE FINANCIAL STATEMENTS For the fi nancial year ended 31 December 2012 2. SIGNIFICANT ACCOUNTING POLICIES (continued) 2.5 Goodwill on acquisitions Goodwill on acquisitions of subsidiary companies and businesses represents the excess of (i) the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over (ii) the fair value of the identifi able net assets acquired. Goodwill on subsidiary companies is recognised separately as intangible assets and carried at cost less accumulated impairment losses. Goodwill on associated companies and joint ventures is included in the carrying amount of the investments. Gains and losses on the disposal of subsidiary and associated companies, and joint ventures include the carrying amount of goodwill relating to the entity sold. 2.6 Borrowing costs Borrowing costs are recognised in the income statement using the effective interest method except for those costs that are directly attributable to the construction or development of properties. This includes those costs on borrowings acquired specifi cally for the construction or development of properties, as well as those in relation to general borrowings used to fi nance the construction or development of properties. The actual borrowing costs incurred during the period up to the issuance of the temporary occupation permit less any investment income on temporary investment of these borrowings, are capitalised in the cost of the properties held for sale and investment properties. Borrowing costs on general borrowings are capitalised by applying a capitalisation rate to construction or development expenditures that are fi nanced by general borrowings. 2.7 Properties held for sale Properties held for sale are those which are intended for sale in the ordinary course of business. Properties held for sale which are unsold are carried at the lower of cost and estimated net realisable value. Cost of properties held for sale includes land, construction and related development costs and interest on borrowings obtained to fi nance the purchase and construction of the properties. Net realisable value represents the estimated selling price in the ordinary course of business less costs to complete the development and selling expenses.
Singapore Land Limited - Annual Report 2012 55 NOTES TO THE FINANCIAL STATEMENTS For the fi nancial year ended 31 December 2012 2. SIGNIFICANT ACCOUNTING POLICIES (continued) 2.7 Properties held for sale (continued) Singapore properties held for sale under the Normal Payment Scheme are stated at cost plus attributable profi ts/ losses less progress billings. Progress billings not yet paid by customers are included within “trade and other receivables”. Where progress billings exceed costs incurred plus recognised profi ts (less recognised losses), the balance is shown as due to customers on development projects, under “trade and other payables”. When it is probable that the total development costs will exceed the total revenue, the expected loss is recognised as an expense immediately. Singapore properties held for sale under the Deferred Payment Scheme and overseas properties held for sale are stated at cost and payments received from purchasers prior to completion are included in current liabilities as “monies received in advance”. 2.8 Investment properties Investment properties of the Group, principally comprising offi ce buildings, are held for long-term rental yields and capital appreciation. Investment properties include properties that are being constructed or developed for future use as investment properties. Investment properties are initially recognised at cost and subsequently carried at fair value, representing the open market value determined by independent professional valuers. Changes in fair values are recognised in the income statement. Investment properties are subject to renovations or improvements at regular intervals. The cost of major renovations and improvements is capitalised. The cost of maintenance, repairs and minor improvement is recognised in the income statement when incurred. On disposal of an investment property, the difference between the disposal proceeds and the carrying amount is recognised in the income statement. 2.9 Investments in subsidiary and associated companies, and joint ventures Investments in subsidiary and associated companies, and joint ventures are carried at cost less accumulated impairment losses in the Company’s statement of fi nancial position. On disposal of such investments, the difference between disposal proceeds and the carrying amounts of the investments are recognised in the income statement.
Page 1 and 2:
ANNUAL REPORT 2012
Page 3 and 4:
Singapore Land Limited - Annual Rep
Page 5 and 6: Singapore Land Limited - Annual Rep
Page 55: Singapore Land Limited - Annual Rep
Page 107 and 108:
Singapore Land Limited - Annual Rep
Page 109 and 110:
SINGAPORE LAND LIMITED Company Regi
Page 111:
Incorporated in the Republic of Sin
show all

Annual Report 2012 - singapore land limited

Create successful ePaper yourself

Delete template?

Save as template?