NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
Financial Statements
93
Annual Report 2014
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 profit or loss 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 profit or loss, 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 profit or loss.
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.
