Ni Hsin Berhad Annual Report 2018

2. Significant accounting policies (continued) (d) Property, plant and equipment (continued) (iii) Depreciation (continued) The estimated useful lives for the current and comparative periods are as follows: • Factory buildings 33 years • Hostels 50 years • Building 50 years • Plant and machinery 14 years • Moulds 14 years • Factory equipment 10 years • Office equipment, furniture, fixtures and fittings 5 - 10 years • Motor vehicles 5 years • Renovation 10 years Depreciation methods, useful lives and residual values are reviewed at the end of the reporting period, and adjusted as appropriate. (e) Leased assets (i) Finance lease Leases in terms of which the Group or the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed. (ii) Operating lease Leases, where the Group or the Company does not assume substantially all the risks and rewards of ownership are classified as operating leases and, except for property interest held under operating lease, the leased assets are not recognised on the statement of financial position. Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense, over the term of the lease. Contingent rentals are charged to profit or loss in the reporting period in which they are incurred. (f) Intangible assets Goodwill Goodwill arises on business combinations is measured at cost less any accumulated impairment losses. Amortisation Goodwill and intangible assets with indefinite useful lives are not amortised but are tested for impairment annually and whenever there is an indication that they may be impaired. Notes to the financial statements (continued) Annual Report 2018 58