NOTES TO
THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MAY 2015
95
GKE CORPORATION LIMITED
ANNUAL REPORT 2015
11.
PROPERTY, PLANT AND EQUIPMENT (cont’d)
Revaluation of leasehold buildings and improvements (cont’d)
If the leasehold buildings and improvements were measured using the cost model, the carrying amounts
would be as follows:
Group
2015
2014
$’000
$’000
Leasehold buildings and improvements at 31 May:
Cost
102,798
102,721
Accumulated depreciation
(13,027)
(8,230)
Net carrying amount
89,771
94,491
Assets held under finance leases
During the financial year, the Group acquired motor vehicles, trailers and forklifts with an aggregate cost of
$1,061,000 (2014: $1,189,000) by means of finance leases. The cash outflow on acquisition of property,
plant and equipment amounted to $3,325,000 (2014: $13,336,000).
The carrying amount of assets held under finance leases, primarily motor vehicles, trailers and forklifts
and cranes and cranes equipment at the end of the reporting period was $2,604,000 (2014: $4,850,000).
Leased assets are pledged as security for the related finance lease liabilities.
Assets pledged as security
In addition to assets held under finance leases, the Group’s leasehold buildings and improvements with
a carrying amount of $107,209,000 (2014: $111,905,000) are mortgaged to secure the Group’s bank
loans (Note 24).
