NOTES TO THE FINANCIAL STATEMENTS
For The Financial Period From 1 January 2014 To 31 March 2015 (Cont’d)
71
Datasonic Group Berhad
(Company No. 809759-X)
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.8 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less accumulated depreciation and
impairment losses, if any.
Depreciation is charged to profit or loss (unless it is included in the carrying amount of another
asset) on the straight-line method to write off the depreciable amount of the assets over their
estimated useful lives. Depreciation of an asset does not cease when the asset becomes idle
or is retired from active use unless the asset is fully depreciated. The principal annual rates used
for this purpose are:-
Furniture and fittings
10% - 20%
Motor vehicles
20%
Office equipment
10% - 33.33%
Machineries
Over the project output, 10% - 33.33%
Renovation
10% - 33.33%
Buildings
2%
Leasehold land
Over the lease periods of 54 years
The depreciation method, useful lives and residual values are reviewed, and adjusted if
appropriate, at the end of each financial year to ensure that the amounts, method and periods
of depreciation are consistent with previous estimates and the expected pattern of consumption
of the future economic benefits embodied in the items of the property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when the cost is incurred and it is probable that the future economic
benefits associated with the asset will flow to the Group and the cost of the asset can be
measured reliably. The carrying amount of parts that are replaced is derecognised. The costs
of the day-to-day servicing of property, plant and equipment are recognised in profit or loss
as incurred. Cost also comprises the initial estimate of dismantling and removing the asset and
restoring the site on which it is located for which the Group is obligated to incur when the asset
is acquired, if applicable.
Assets-in-progress represent assets under construction, and which are not ready for commercial
use at the end of the reporting period. Assets-in-progress are stated at cost, and is transferred to
the relevant category of assets and depreciated accordingly when the assets are completed
and ready for commercial use.
Cost of assets-in-progress include direct cost, related expenditure and interest cost on borrowings
taken to finance the construction or acquisition of the assets to the date that the assets are
completed and put into use.
An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use. Any gain or loss arising from derecognition of the
asset is recognised in profit or loss.
