Annual Report 2012 - singapore land limited
Annual Report 2012 - singapore land limited
Annual Report 2012 - singapore land limited
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Singapore Land Limited - <strong>Annual</strong> <strong>Report</strong> <strong>2012</strong><br />
55<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
For the fi nancial year ended 31 December <strong>2012</strong><br />
2. SIGNIFICANT ACCOUNTING POLICIES (continued)<br />
2.7 Properties held for sale (continued)<br />
Singapore properties held for sale under the Normal Payment Scheme are stated at cost plus attributable profi ts/<br />
losses less progress billings. Progress billings not yet paid by customers are included within “trade and other<br />
receivables”. Where progress billings exceed costs incurred plus recognised profi ts (less recognised losses), the<br />
balance is shown as due to customers on development projects, under “trade and other payables”. When it is<br />
probable that the total development costs will exceed the total revenue, the expected loss is recognised as an<br />
expense immediately.<br />
Singapore properties held for sale under the Deferred Payment Scheme and overseas properties held for sale<br />
are stated at cost and payments received from purchasers prior to completion are included in current liabilities as<br />
“monies received in advance”.<br />
2.8 Investment properties<br />
Investment properties of the Group, principally comprising offi ce buildings, are held for long-term rental yields and<br />
capital appreciation. Investment properties include properties that are being constructed or developed for future<br />
use as investment properties.<br />
Investment properties are initially recognised at cost and subsequently carried at fair value, representing the<br />
open market value determined by independent professional valuers. Changes in fair values are recognised in the<br />
income statement.<br />
Investment properties are subject to renovations or improvements at regular intervals. The cost of major renovations<br />
and improvements is capitalised. The cost of maintenance, repairs and minor improvement is recognised in the<br />
income statement when incurred.<br />
On disposal of an investment property, the difference between the disposal proceeds and the carrying amount is<br />
recognised in the income statement.<br />
2.9 Investments in subsidiary and associated companies, and joint ventures<br />
Investments in subsidiary and associated companies, and joint ventures are carried at cost less accumulated<br />
impairment losses in the Company’s statement of fi nancial position. On disposal of such investments, the difference<br />
between disposal proceeds and the carrying amounts of the investments are recognised in the income statement.