Straco Corporation Limited • Annual Report 2014
60
NOTES TO THE FINANCIAL STATEMENTS
5
Investment property (cont’d)
Source of estimation uncertainty
The cost of investment property is depreciated on a straight-line basis over its useful life. Management estimates the useful life of the investment
property to be between 35 years 7 months. The Group reviews annually the estimated useful life of investment property based on the factors that
include asset utilisation, internal technical evaluation, technological changes, environmental and anticipated use of the asset. 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 life of investment property would increase depreciation expense and decrease investment property.
6
Investments in subsidiaries
Company
2014
2013
$
$
Equity investments, at cost
76,070,954
48,070,955
Impairment losses
(909,871)
(909,871)
75,161,083
47,161,084
Loans and advances to subsidiaries
27,059,255
959,255
102,220,338
48,120,339
