Sun Art Retail Group Limited - TodayIR.com

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(i)
Other property, plant and equipment (continued)
(ii)
Depreciation
Depreciation is calculated to write off the cost of items of property, plant and
equipment, less their estimated residual value, if any, using the straight line method
over their estimated useful lives as follows:
• Buildings 10-30 years
• Leasehold improvements 5-20 years
• Store equipment 4-10 years
• Office equipment 3-5 years
• Motor vehicles 5-8 years
Leased assets are depreciated over the shorter of the lease term and their useful lives
unless it is reasonably certain that the Group will obtain ownership by the end of the
lease term. No depreciation is provided on construction in progress.
Where parts of an item of property, plant and equipment have different useful lives,
the cost of the item is allocated on a reasonable basis between the parts and each
part is depreciated separately.
Depreciation methods, useful lives and residual values are reviewed annually.
(j)
Intangible assets (other than goodwill)
Intangible assets that are acquired by the Group are stated at cost less accumulated
amortisation and impairment losses (see note 1(l)).
Amortisation is charged to profit or loss on a straight-line basis over the estimated useful
lives of intangible assets, from the date that they are available for use, as follows:
• Software 3 years
Both the period and method of amortisation are reviewed annually.
Sun Art Retail Group Limited
Annual Report 2012
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