The investment properties are stated at cost, less accumulated depreciation (if applicable) and any impairment losses.
Cost includes the purchase price of the property and directly attributable costs of bringing the property to its working condition for its intended use. The property is not revalued to fair value annually but is reviewed for indications of impairment in accordance with applicable accounting standards.
Rental income from the investment property is recognized on an accrual basis.
No depreciation is charged where the residual value of the property is equal to or exceeds its carrying amount. The Directors consider the residual value of the property annually to ensure it remains appropriate.