70
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
10 DEVELOPMENT PROPERTIES (CONT’D)
At 30 June 2016, development properties of the Group with carrying amounts of
$21,737,058 (2015: $26,282,351) are pledged as securities for banking facilities (see
Note 16).
The change in allowance for foreseeable losses in respect of development properties
during the year is as follows:
Group
2016
2015
$
$
At beginning of the year
788,108
–
Addition
74,300 788,108
At end of the year
862,408 788,108
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.
10 DEVELOPMENT PROPERTIES (CONT’D)
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.
11 TRADEAND OTHER RECEIVABLES
Group
Company
Note 2016
2015
2016
2015
$
$
$
$
Trade receivables
13,049,301 13,868,790
–
–
Amounts due from
subsidiaries (non-trade)
–
– 20,828,762 28,015,485
Amount due from former
shareholders of a
subsidiary
(a)
1,104,566 1,095,075
–
–
Amount due from a related
party
(b)
–
42,491
–
–
Loan due from a subsidiary
–
– 1,586,120 1,942,841
Stamp duties and option
fees recoverable
(c)
– 437,100
–
–
Deposits and other
receivables
1,062,363 1,633,885
20,300
–
Prepayments and
advances to suppliers
1,061,879 447,426 107,547
116,029
Total
16,278,109 17,524,767 22,542,729 30,074,355
Non-current
–
– 1,205,792 1,586,120
Current
16,278,109 17,524,767 21,336,937 28,488,235
Total
16,278,109 17,524,767 22,542,729 30,074,355
