2. Summary of significant accounting policies (cont’d)
2.10 Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent
to recognition, property, plant and equipment are measured at cost less accumulated
depreciation and any accumulated impairment losses. The cost includes the cost of
replacing part of the property, plant and equipment and borrowing costs that are directly
attributable to the acquisition, construction or production of a qualifying property, plant
and equipment. The accounting policy for borrowing costs is set out in Note 2.19. The
cost of an item of property, plant and equipment is recognised as an asset if, and only if, it
is probable that future economic benefits associated with the item will flow to the Group
and the cost of the item can be measured reliably.
Depreciation of an asset begins when it is available for use and is computed on a straight-
line basis over the estimated useful lives of the assets as follows:
Leasehold property and buildings
–
15 to 30 years
Dry docks, quays and ancillary
–
8 to 20 years
Plant and machinery
–
3 to 30 years
Office equipment, furniture and fittings –
3 to 10 years
Vessels
–
15 to 25 years
Motor vehicles
–
5 to 8 years
Vessels consist of tugs and other vessels and barges.
Assets under construction included in property, plant and equipment are not depreciated
as these assets are not yet available for use.
The carrying values of property, plant and equipment are reviewed for impairment
when events or changes in circumstances indicate that the carrying value may not be
recoverable.
The residual value, useful life and depreciation method are reviewed at the end of each
reporting period, and adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no
future economic benefits are expected from its use or disposal. Any gain or loss on
derecognition of the asset is included in profit or loss in the year the asset is derecognised.
Fully depreciated assets are retained in the financial statements until they are no longer in
use and no further charge for depreciation is made in respect of these assets.
2.11 Intangible assets
(a) Goodwill
Goodwill is initially measured at cost. Following initial recognition, goodwill is
measured at cost less any accumulated impairment losses.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
83
