Land and property developments are stated at the lower of cost and net realisable value. Cost includes the purchase price, directly attributable expenses, and interest on specific finance raised for the development.
The Company capitalises borrowing costs once development activity has commenced and continues to do so until practical completion. Borrowing costs are capitalised based on the actual finance costs incurred on the related borrowings during the year.
Net realisable value represents the estimated selling price less all estimated costs to completion and costs necessary to make the sale.