Annual Report
2015
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DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
79
2.
Significant accounting policies (cont’d)
(c) Property, plant and equipment (cont’d)
(ii) Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised
in the carrying amount of the item if it is probable that the future economic benefits embodied
within the component will flow to the Group or the Company, and its cost can be measured
reliably. The carrying amount of the replaced component is derecognised to profit or loss. The
costs of the day-to-day servicing of property, plant and equipment are recognised in profit or
loss as incurred.
(iii) Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of
individual assets are assessed, and if a component has a useful life that is different from the
remainder of that asset, then that component is depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful
lives of each component of an item of property, plant and equipment. Leased assets are
depreciated over the shorter of the lease term and their useful lives unless it is reasonably
certain that the Group will obtain ownership by the end of the lease term. Assets under
construction are not depreciated until the assets are ready for their intended use.
The estimated useful lives of the other assets for the current and comparative periods are as
follows:
Buildings
20 years
Marine vessels
25 years
Onboard equipment
10 years
Dry docking expenditures
5 years
Containers
10 years
Offshore equipment
5 years
Furniture and fittings
10 years
Office equipment
2.5 - 10 years
Motor vehicles
5 years
Depreciation methods, useful lives and residual values are reviewed and adjusted as
appropriate at the end of the reporting period.
The policy for dry docking expenditures included in the marine vessels are stated in Note 2(m).
(d) Leased assets
(i) Finance lease
Leases in terms of which the Group or the Company assumes substantially all the risks and
rewards of ownership are classified as finance leases. Upon initial recognition, a leased asset
is measured at an amount equal to the lower of its fair value and the present value of the
minimum lease payments. Subsequent to initial recognition, the asset is accounted for in
accordance with the accounting policy applicable to that asset [see Note 2(c)].
Notes to the
Financial Statements
(cont’d)
