60
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
4 PROPERTY, PLANTAND EQUIPMENT (CONT’D)
Leasehold Plant and Motor Asset under
Note buildings machinery vehicles construction Total
$
$
$
$
$
Group
Accumulated depreciation and impairment loss:
At 1 July 2014
43,657 2,970,172 446,207
– 3,460,036
Depreciation
799,087 644,112 117,792
– 1,560,991
Disposals/Written off
– (19,576) (136,345)
– (155,921)
Elimination of
depreciation on
revaluation
(771,207)
–
–
– (771,207)
Effects of movements
in exchange rates
– 39,410
–
– 39,410
At 30 June 2015
71,537 3,634,118 427,654
– 4,133,309
Depreciation
718,593 857,468 140,809
– 1,716,870
Disposals/Written off
(153,488) (890,117)
(33,576)
– (1,077,181)
Effects of movements
in exchange rates
– 4,797
–
–
4,797
At 30 June 2016
636,642 3,606,266 534,887
– 4,777,795
Net book value:
At 1 July 2014
29,679,625 1,785,715 161,457
– 31,626,797
At 30 June 2015
35,651,945 2,272,820 573,375 275,983 38,774,123
At 30 June 2016
21,886,840 1,990,224 364,089
– 24,241,153
The leasehold buildings are pledged as security for banking facilities (Note 16).
4 PROPERTY, PLANTAND EQUIPMENT (CONT’D)
The depreciation expense is charged to profit or loss and included in other operating
expenses.
For each revalued class of property, plant and equipment, the carrying amount that would
have been recognised had the assets been carried under the cost model is as follows:
Group
2016
2015
$
$
Leasehold buildings:
Cost
9,285,713 12,685,713
Accumulated depreciation
(2,506,714) (4,426,215)
Net book value
6,778,999 8,259,498
Independent valuers were sourced to determine the fair values of the Group’s leasehold
properties at least once every three years based on the properties’ highest and best use.
As at 30 June 2015 and 2016, the fair values of the leasehold warehouses and leasehold
ramp-up factory unit were based on valuations carried out by an independent valuer.
Measurement of fair values
(i)
Fair value hierarchy
The fair value measurement for the leasehold buildings has been categorised
as Level 2 fair value based on the inputs to the valuation techniques used (see
Note 2.4).
