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Gamuda Berhad (29579-T) • Annual Report 2012
2.
Summary of significant accounting policies (cont’d.)
2.11 Investment properties (cont’d.)
Investment properties are derecognised when either they have been disposed of or when the investment
property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any
gain or loss on the retirement or disposal of an investment property is recognised in profit or loss in the year
of retirement or disposal.
Transfers are made to or from investment property only when there is a change in use. When an entity uses the
cost model, transfers between investment property, owner-occupied property and inventories do not change the
carrying amount of the property transferred and they do not change the cost of that property for measurement
or disclosure purposes.
2.12 Service concession arrangements
The Group recognises revenue from the construction and upgrading of the infrastructure in accordance with
its accounting policy for construction contracts set out in Note 2.14. Where the Group performs more than
one service under the arrangement, consideration received or receivable is allocated to the components by
reference to the relative fair values of the services delivered, when the amounts are separately identifiable.
The Group recognises the consideration received or receivable as a financial asset to the extent that it has an
unconditional right to receive cash or another financial asset for the construction services. Financial assets are
accounted for in accordance with the accounting policy set out in Note 2.23.
The Group recognises the consideration receivable as an intangible asset to the extent that it receives a right
to charge users of the public service. Intangible assets are accounted for in accordance with the accounting
policy set out in Note 2.9.
Subsequent costs and expenditures related to infrastructure and equipment arising from the Group’s
commitments to the concession contracts or that increase future revenue are recognised as additions to the
intangible asset and are stated at cost. Capital expenditures necessary to support the Group’s operation as
a whole are recognised as property, plant and equipment, and accounted for in accordance with the policy
stated under property, plant and equipment in Note 2.10. When the Group has contractual obligations that it
must fulfill as a condition of its license to: a) maintain the infrastructure to a specified standard or, b) to restore
the infrastructure when the infrastructure has deteriorated below a specified condition, it recognises and
measures these contractual obligations in accordance with the accounting policy for provisions in Note 2.18.
Repairs and maintenance and other expenses that are routine in nature are expensed and recognised in profit
or loss as incurred.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012