For the financial year ended 31 December 2015
62
HAW PAR CORPORATION LIMITED
2. SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(d) Property, plant and equipment
(continued)
(4) Depreciation (continued)
The residual values, estimated useful lives and depreciation method of property, plant and equipment are
reviewed, and adjusted as appropriate, at each financial year-end to ensure that the method and period
of depreciation are consistent with the expected pattern of economic benefits from items of property,
plant and equipment. The effects of any revision are recognised in the profit or loss for the financial year in
which the changes arise.
(5) Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment that has already been recognised is
added to the carrying amount of the asset only when it is probable that future economic benefits associated
with the item will flow to the Group and the cost of the item can be measured reliably. All other repair and
maintenance expense is recognised in the profit or loss when incurred.
(6) Disposal
On disposal of an item of property, plant and equipment, the difference between the net disposal proceeds
and its carrying amount is recognised in the profit or loss.
(e) Intangible assets
(1) Goodwill
Goodwill on acquisitions of subsidiaries and businesses on or after 1 January 2010 represents the excess of
the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-
date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets
acquired.
Goodwill on acquisition of subsidiaries and businesses prior to 1 January 2010 and on acquisition of
associated companies represents the excess of the cost of the acquisition over the fair value of the Group’s
share of their identifiable net assets at the date of acquisition.
Goodwill on subsidiaries is recognised separately as intangible assets and carried at cost less accumulated
impairment losses.
Goodwill on associated companies is included in the carrying amount of the investments.
Gains and losses on the disposal of subsidiaries and associated companies include the carrying amount of
goodwill relating to the entity sold, except for goodwill arising from acquisitions prior to 1 January 2001.
Such goodwill was adjusted against retained profits in the year of acquisition and is not recognised in profit
or loss on disposal.
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
