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CapitaLand Mall Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
3 Significant accounting policies
(continued)
3.2 Plant and equipment
(continued)
Depreciation is provided on a straight-line basis so as to write off items of plant and equipment, and major
components that are accounted for separately, over their estimated useful lives as follows:
Furniture, fittings and equipment - 2 to 5 years
Gain or loss arising from the retirement or disposal of plant and equipment is determined by comparing the
proceeds from disposal with the carrying amount of plant and equipment and is recognised in the Statement
of Total Return.
Depreciation methods, useful lives and residual values are reviewed, and adjusted as appropriate, at each
reporting date.
3.3 Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or both.
Investment properties are accounted for as non-current assets and are stated at initial cost on acquisition
and at fair value thereafter. The cost of a purchased property comprises its purchase price and any directly
attributable expenditure including capitalised borrowing costs. Directly attributable transaction costs are
included in the initial measurement. The cost of self-constructed investment property includes the cost of
materials and direct labour, any other costs directly attributable to bringing the investment property to a working
condition for their intended use and capitalised borrowing costs. Fair value is determined in accordance with
the Trust Deed, which requires the investment properties to be valued by independent registered valuers in
the following events:
s IN SUCH MANNER AND FREQUENCY REQUIRED UNDER THE #)3 #ODE ISSUED BY -!3 AND
s AT LEAST ONCE IN EACH PERIOD OF
MONTHS FOLLOWING THE ACQUISITION OF EACH PARCEL OF REAL ESTATE PROPERTY
Any increase or decrease on revaluation is credited or charged to the Statement of Total Return as a net
change in fair value of the investment properties.
When an investment property is disposed of, the resulting gain or loss recognised in the Statement of
Total Return is the difference between net disposal proceeds and the carrying amount of the property.
Investment properties are not depreciated. The properties are subject to continued maintenance and regularly
revalued on the basis set out above. For income tax purposes, the Group and the Trust may claim capital
allowances on assets that qualify as plant and machinery under the Income Tax Act.
