169 F INANC IAL Statements Sect ion 05 Annual Report 2022 NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 3. SIGNIFICANT ACCOUNTING POLICIES (contd.) Income Taxes (contd.) (c) Sales tax Revenue, expenses and assets are recognised net of the amount of sales tax except: • where the sales tax incurred in a purchase of assets or services is not recoverable from the taxation authority, in which case the sales tax is recognised as part of the cost acquisition of the asset or as part of the expense items as applicable; and • receivables and payables that are stated with the amount of sales tax included. The net amount of sales tax recoverable form, or payable to, the taxation authority is included as part of the receivables or payables in the statements of financial position. Convertible unsecured loan stocks (“CULS”) The CULS are regarded as compound instruments, consisting of a liability component and an equity component. The component of CULS that exhibits characteristics of a liability is recognised as a financial liability in the statements of financial position, net of transaction costs. On issuance of the CULS, the fair value of the liability component is determined using a market rate for an equivalent non-convertible debt and this amount is carried as a financial liability in accordance with the accounting policy for other financial liabilities. The residual amount, after deducting the fair value of the liability component, is recognised and included in shareholders’ equity, net of transaction costs. Transaction costs are apportioned between the liability and equity components of the CULS based on the allocation of proceeds to the liability and equity components when the instruments were first recognised. Property, Plant and Equipment All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and equipment is recognised as an asset, and only if, it is probable that future economic benefits associated with them will flow to the Group and the cost of the item can be measured reliably. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Capital work in progress are stated at cost and are not depreciated until it is ready for its intended use. Upon completion, capital work in progress are transferred to categories of property, plant and equipment, depending on the nature of the assets. Property, plant and equipment are depreciated on a straight-line basis to write off the cost of each asset to their residual values over their estimated useful lives at following annual depreciation rates: Building structure 1.25% - 5% Plant and machinery 4% - 20% Renovations 20% Furniture, fittings and office equipment 2% - 33.3% Motor vehicles 10% - 20%
RkJQdWJsaXNoZXIy ODQxNzg=