Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 31 3. Significant accounting policies (continued) (b) Property, plant and equipment (continued) (i) Recognition and measurement (continued) The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and is recognised net within “other operating income” and “administrative expenses” respectively in profit or loss. (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 from the date that they are available for use. Freehold land is not depreciated. Assets under construction are not depreciated until the assets are ready for their intended use. The estimated useful lives for the current and comparative are as follows: Buildings 50 years Plant and machinery 10 – 14 years Motor vehicles 5 – 10 years Furniture, fittings and office equipment 3 – 10 years Tools and equipment 5 – 10 years Office renovation 10 years Depreciation methods, useful lives and residual values are reviewed at end of the reporting period, and adjusted as appropriate.