Page 419 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Central Retail Corporation Public Company Limited and its Subsidiaries
Notes to the financial statements
For the year ended 31 December 2021

(i) Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset.The cost of self-
constructed assets includes capitalised borrowing costs and the costs of dismantling and removing the
items and restoring the site on which they are located including transfers from other comprehensive
income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property,
plant and equipment. Purchased software that is integral to the functionality of the related equipment is
capitalised as part of that equipment.

Differences between the proceeds from disposal and the carrying amount of property, plant and
equipment are recognised in profit or loss.

Reclassification to investment property

When the use of a property changes from owner-occupied to investment property, the property is
reclassified as investment property at its book value.

Subsequent costs

The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will flow
to the Group, and its cost can be measured reliably. The carrying amount of the replaced part is
derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in
profit or loss as incurred.

Depreciation

The Group changed the depreciation method of plant and equipment which purchase or acquire after
2018 from sum-of-the-years-digits to straight-line method. Such change of depreciation method has
been effective since 1 January 2019, onward except for subsidiaries in foreign operation and certain
subsidiaries in Thailand which the depreciation method is a straight-line basis over the periods.

Depreciation is calculated over the estimated useful lives of each component of an asset and recognised
in profit or loss. No depreciation is provided on freehold land or assets under construction.

The estimated useful lives are as follows:
Land improvements 5 - 20 years
Leasehold improvements 2 - 30 years
Building, construction and improvements 3 - 50 years
Information system equipment 2 - 20 years
Utility and building system equipment 2 - 28 years
Furniture, fixtures and office equipment 2 - 20 years
Vehicles 4 - 10 years

(j) Goodwill

Goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted
investee, the carrying amount of goodwill is included in the carrying amount of the investment.
Internally generated goodwill and brands, is recognised in profit or loss as incurred.

Annual Report 2021 (Form 56-1 One-Report) 419
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