NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
62
ANNUAL REPORT 2015/2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.15 Property, plant and equipment (cont’d)
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the
asset and the net amount is restated to the revalued amount of the asset. The revaluation surplus included in the
asset revaluation reserve in respect of an asset is transferred directly to retained earnings on retirement or disposal
of the asset.
Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation is computed on a straight-
line basis or a diminishing value basis over the estimated useful lives of the assets as follows:
Leasehold buildings
– the remaining lease terms of 27 to 57 years at the time of
acquisition
Plant, workshop and rental equipment
– 2 to 20 years
Furniture and fixtures
– 2 to 20 years
Motor vehicles
– 3 to 10 years
Office equipment
– 1 to 5 years
Remotely operated vehicles (ROV) and vessels – 6 to 20 years
Assets under construction included in plant and equipment are not depreciated as these assets are not yet
available for use.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial year-end, and adjusted
prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss on de-recognition of the asset is included in profit or loss in the
year the asset is derecognised.
2.16 Subsidiaries
A subsidiary is an investee that is controlled by the Group. The Group controls an investee when it is exposed,
or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee.
In the Company’s separate financial statements, investments in subsidiaries are accounted for at cost less any
impairment losses.
