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(d) Investment properties under development
Investment properties under development are properties constructed or developed for future use as investment properties.
Investment properties under development are measured at fair value. The difference between the fair value and cost (including
acquisition costs, development expenditure, borrowing costs and other related expenditure) is credited or charged to the
Statement of Total Return as a change in fair value of investment properties under development. Upon completion, the carrying
amounts are reclassifed to investment properties.
(e) Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is
directly attributable to the acquisition of the asset.
Subsequent expenditure relating to plant and equipment is added to the carrying amount of the asset when it is probable that
future economic beneft in excess of the originally assessed standard of performance of the existing asset will fow to the Group.
All other subsequent expenditure is recognised as an expense in the period in which it is incurred.
Depreciation is provided on the straight-line basis over the estimated useful lives of each component of an item of plant and
equipment as follows:
Furniture and fxtures 5 - 7 years
Equipment 8 - 10 years
Computers and offce equipment 1 - 5 years
Gains or losses arising from the retirement or disposal of plant and equipment are determined as the difference between the
estimated net disposal proceeds and the carrying amount of the asset, and are recognised in the Statement of Total Return on
the date of retirement or disposal.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted as appropriate.
(f) Finance leases
Leases which the Group has substantially transferred all the risks and rewards incidental to ownership of the asset to the lessee
are classifed as fnance leases. The leased asset is derecognised and the present value of the lease receivable (net of initial direct
costs for negotiating and arranging the lease) is recognised as fnance lease receivable on the balance sheet. The difference
between the gross receivable and the present value of the lease receivable is recognised as unearned interest income.
Each lease payment received is applied against the gross investment in the fnance lease receivable to reduce both the principal
and the unearned interest income. The interest income is recognised in the Statement of Total Return on a basis that refects a
constant periodic rate of return on the net investment in the fnance lease receivable.
NOTES TO THE FINANCIAL STATEMENTS
ASCENDAS REAL ESTATE INVESTMENT TRUST
ANNUAL REPORT FY11/12
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