Sasbadi Annual Report 2020

75 ANNUAL REPORT 2020 FINANCIAL STATEMENTS (continued) 2. Significant accounting policies (continued) (d) Property, plant and equipment (continued) (ii) Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Group or the Company, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised to profit or loss. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. (iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is depreciated separately. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. 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. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use. The estimated useful lives for the current and comparative periods are as follows: Condominiums 50 years Leasehold land 60 to 99 years Buildings 50 years Motor vehicles 5 years Office equipment, furniture and fittings 10 years Renovation 10 years Computers 3 to 5 years Depreciation methods, useful lives and residual values are reviewed at the end of the reporting period, and adjusted as appropriate.