'" SIGNIFICANT#ACCOUNTING#ESTIMATES#AND#JUDGEMENTS The!preparation!of!the!Group’s!and!of!the!Company’s!financial!statements!requires!management!to!make!judgements&!estimates!and! assumptions!that!a(ect!the!reported!amounts!of!revenue&!expenses&!assets!and!liabilities!and!the!disclosure!of!contingent!liabilities!at! the!reporting!date'!However&!uncertainty!about!these!assumptions!and!estimates!could!result!in!outcomes!that!could!require!a!material! adjustment!to!the!carrying!amount!of!the!asset!or!liability!a(ected!in!the!next!financial!year' $*# Key!sources!of!estimation!uncertainty The!key!assumptions!concerning!the!future!and!other!key!sources!of!estimation!uncertainty!at!the!reporting!date!that!have!a! significant!risk!of!causing!a!material!adjustment!to!the!carrying!amounts!of!assets!and!liabilities!within!the!next!financial!year!are! discussed!below) (a) Property!development! The!Group!recognises!certain!of!its!property!development!revenue!and!expenses!in!the!statements!of!comprehensive!income! by!using!an!input!method!which!is!based!on!costs!incurred!for!work!performed!up!to!the!reporting!period!relative!to!the!total! expected!cost!to!the!satisfaction!of!those!performance!obligations' Significant!judgement!is!required!in!determining!the!measure!of!progress&!the!extent!of!the!property!development!costs! incurred&!the!estimated!total!property!development!revenue!and!costs&!as!well!as!the!recoverability!of!the!property!development! costs'!In!making!the!judgement&!the!Group!evaluates!based!on!past!experience!and!by!relying!on!the!work!of!specialists'! The!carrying!amounts!of!the!Group’s!land!held!for!property!development&!property!development!cost!and!contract!cost!assets! are!disclosed!in!Note!$%(a)&!Note!$%(b)!and!Note!"/!respectively' (b) Deferred!tax!assets Deferred!tax!assets!are!recognised!for!all!unused!tax!losses&!unabsorbed!capital!allowances!and!other!deductible!temporary! di(erences!to!the!extent!that!it!is!probable!that!taxable!profit!will!be!available!against!which!the!losses!and!capital!allowances! can!be!utilised'!Significant!management!judgement!is!required!to!determine!the!amount!of!deferred!tax!assets!that!can! be!recognised&!based!upon!the!likely!timing!and!level!of!future!taxable!profit!together!with!future!tax!planning!strategies'! The! total! unrecognised! tax! losses&! unutilised! capital! allowances&! unused! investment! tax! allowances! and! other! deductible! temporary!di(erences!of!the!Group!are!disclosed!in!Note!$"' (c) Provision!of!expected!credit!loss!of!trade!receivables%!other!receivables!and!contract!assets The!Group!and!the!Company!assess!the!credit!risk!at!each!reporting!date&!whether!there!have!been!significant!increases!in! credit!risk!since!initial!recognition!on!an!individual!basis'!To!determine!whether!there!is!a!significant!increase!in!credit!risks&!the! Group!and!the!Company!consider!factors!such!as!the!probability!of!insolvency!or!significant!financial!di2culties!of!the!debtors! and!default!or!significant!delay!in!payments' Where!there!is!a!significant!increase!in!credit!risk&!the!Group!and!the!Company!determine!the!lifetime!expected!credit!loss!by! considering!the!loss!given!default!and!the!probability!of!default!assigned!to!each!counterparty!customer'!The!financial!assets! are!written!o(!either!partially!or!full!when!there!is!no!realistic!prospect!of!recovery'!This!is!generally!the!case!when!the!Group! and!the!Company!determine!that!the!debtor!does!not!have!assets!or!sources!of!income!that!could!generate!su2cient!cash! flows!to!repay!the!amount!subject!to!the!write-o(s'! The!carrying!amounts!of!the!trade!and!other!receivables!and!contract!assets!are!disclosed!in!Notes!"+!and!"1!respectively'! 209 FINANCIAL STATEMENTS & OTHER INFORMATION
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