Straco Corporation Limited • Annual Report 2014
58
NOTES TO THE FINANCIAL STATEMENTS
4
Property, plant and equipment (cont’d)
Company
Leasehold
buildings
Leasehold
improvements
Office equipment,
furniture
and fittings
Total
$
$
$
$
Cost
At 1 January 2013
2,727,449
212,694
278,806
3,218,949
Additions
–
–
22,951
22,951
Disposals
–
–
(8,008)
(8,008)
At 31 December 2013
2,727,449
212,694
293,749
3,233,892
At 1 January 2014
2,727,449
212,694
293,749
3,233,892
Additions
–
–
28,553
28,553
At 31 December 2014
2,727,449
212,694
322,302
3,262,445
Accumulated depreciation
At 1 January 2013
395,480
132,855
277,972
806,307
Depreciation charge for the year
54,549
21,269
1,689
77,507
Disposals
–
–
(8,008)
(8,008)
At 31 December 2013
450,029
154,124
271,653
875,806
At 1 January 2014
450,029
154,124
271,653
875,806
Depreciation charge for the year
54,549
21,269
10,236
86,054
At 31 December 2014
504,578
175,393
281,889
961,860
Carrying amounts
At 1 January 2013
2,331,969
79,839
834
2,412,642
At 31 December 2013
2,277,420
58,570
22,096
2,358,086
At 31 December 2014
2,222,871
37,301
40,413
2,300,585
Source of estimation uncertainty
The costs of property, plant and equipment are depreciated on a straight-line basis over their useful lives. Management estimates the useful lives
of these property, plant and equipment to be between 3 to 50 years. The Group reviews annually the estimated useful lives of property, plant and
equipment based on the factors that include asset utilisation, internal technical evaluation, technological changes, environmental and anticipated
use of the assets. It is possible that future results of operations could be materially affected by changes in these estimates brought about by changes
in factors mentioned. A reduction in the estimated useful lives of property, plant and equipment would increase depreciation expense and decrease
property, plant and equipment.
