68
TEHO INTERNATIONAL INC LTD.
Annual Report 2015
9 DEVELOPMENT PROPERTIES (CONT’D)
The change in allowance for foreseeable losses in respect of development properties during
the year is as follows:
Group
2015
2014
$
$
At beginning of the year
–
–
Addition
788,108
–
At end of the year
788,108
–
Development properties are measured at the lower of cost and net realisable value. The
Group makes allowances for foreseeable losses on development properties when the
aggregate costs incurred on the development properties and attributable profits exceed
the net realisable value. Net realisable value of development properties is the estimated
selling price in the ordinary course of business, based on market prices at the financial
year end and discounted for the time value of money if material, less the estimated costs of
completion and the estimated costs necessary to make the sale.
Management obtains independent professional valuations of gross development values of
development properties to estimate the selling prices in the ordinary course of business.
The gross development values of the development properties are estimated using the
market comparison approach. Construction costs are estimated based on contracted
amounts and in respect of amounts not contracted for, management’s estimates of the
amounts to be incurred.
Management also assesses if any write-down of completed properties for sale is required
based on their estimates of selling prices which are based on recent selling prices and the
prevailing market conditions.
Independent professional valuations are undertaken to obtain estimates of the fair value of
land which is included within development properties. Where such valuations are undertaken,
the valuations were based on the market comparison approach and residual approach.
9 DEVELOPMENT PROPERTIES (CONT’D)
Significant non-cash transaction
During the financial year ended 30 June 2015, the non-controlling interest of a subsidiary
contributed a piece of land in relation to “The Bay” project in Cambodia with a fair value
of $21,656,648 (2014: Nil). This has been included under development properties as at
30 June 2015.
10 TRADE AND OTHER RECEIVABLES
Group
Company
2015
2014
2015
2014
Note
$
$
$
$
Trade receivables
14,286,970 16,155,561
–
–
Less: Allowance for
impairment
(418,180)
(20,809)
–
–
13,868,790 16,134,752
–
–
Amounts due from
subsidiaries:
- Trade
–
–
–
776
- Non-trade
–
– 28,015,485 6,398,895
Amount due from
former shareholders
of a subsidiary
(a) 1,095,075
–
–
–
Amount due from
a related party
(b)
42,491
–
–
–
Loan due from a subsidiary
–
– 1,942,841
–
Stamp duties and
option fees recoverable (c)
437,100
–
–
–
Deposits and other
receivables
1,633,885
229,872
–
17,783
Prepayments
447,426 1,129,967
116,029
116,628
Total
17,524,767 17,494,591 30,074,355 6,534,082
Non-current
–
– 1,586,120
–
Current
17,524,767 17,494,591 28,488,235 6,534,082
Total
17,524,767 17,494,591 30,074,355 6,534,082
NOTES TO THE
FINANCIAL STATEMENTS
Year ended 30 June 2015
