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NOTES TO THE FINANCIAL STATEMENTS
For the Ànancial year ended 31 December 2013
93
Annual Report 2013
F i nanc i a l Statement s
2. Significant accounting policies (continued)
2.10 Impairment of non-financial assets (continued)
(b) Property, plant and equipment
Investment properties
Investments in subsidiaries and associated companies
Property, plant and equipment, investment properties and investments in subsidiaries and associated
companies are tested for impairment whenever there is any objective evidence or indication that these assets
may be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to
sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash
inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is
determined for the CGU to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment loss in
the income statement unless the asset is carried at revalued amount, in which case, such impairment loss is
treated as a revaluation decrease.
An impairment loss for an asset other than goodwill is reversed only if, there has been a change in the
estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised.
The carrying amount of this asset is increased to its revised recoverable amount, provided that this
amount does not exceed the carrying amount that would have been determined (net of any accumulated
amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in the income statement, unless
the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase.
However, to the extent that an impairment loss on the same revalued asset was previously recognised as an
expense, a reversal of that impairment is also recognised in the income statement.
2.11 Financial assets
(a) Classification
The Group classifies its financial assets in the following categories: at fair value through profit or loss, loans
and receivables, held-to-maturity, and available-for-sale. The classification depends on the nature of the
asset and the purpose for which the assets were acquired. Management determines the classification of its
financial assets at initial recognition and in the case of assets classified as held-to-maturity, re-evaluates this
designation at each balance sheet date.
(i) Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading, and those designated
at fair value through profit or loss at inception. A financial asset is classified as held for trading if it
is acquired principally for the purpose of selling in the short term. Financial assets designated as
at fair value through profit or loss at inception are those that are managed and their performances
are evaluated on a fair value basis, in accordance with a documented Group investment strategy.
Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in
this category are presented as current assets if they are either held for trading or are expected to be
realised within 12 months after the balance sheet date.