Construction Industry Council - Annual Report 2024

CONSTRUCTION INDUSTRY COUNCIL 210 For the year ended 31 December 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Depreciation is calculated using the straight-line method over their estimated useful lives as follows: Leasehold land and building Less than 1 year – 50 years Motor vehicles 5 years Computer equipment 2 – 5 years Renovation and building facilities Less than 1 year to 5 years Furniture and fixtures 10 years Facilities, tools, machinery and workshop equipment 5 years Other equipment 10 years Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset. Impairment of tangible assets At the end of each reporting period, the Group reviews the carrying amounts of the tangible assets to determine whether there is any indication that those assets have suffered an impairment loss or an impairment loss previously recognised no longer exists or may have decreased. Cash and cash equivalents Cash and cash equivalents presented on the consolidated statement of financial position include: (a) cash, which comprises of cash on hand and demand deposits, excluding bank balances that are subject to regulatory restrictions that result in such balances no longer meeting the definition of cash; and (b) cash equivalents, which comprises of short-term (generally with original maturity of three months or less), highly liquid investments that are readily convertible to a known amount of cash and which are subject to an insignificant risk of changes in value. Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above. Employee benefits Salaries, gratuities, paid annual leave, contributions to defined contribution retirement plans are accrued in the year in which the associated services are rendered by employees. Leases The Group assesses whether a contract is or contains a lease based on the definition under HKFRS 16 at inception of the contract. Such contract will not be reassessed unless the terms and conditions of the contract are subsequently changed. The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right- of-use asset is initially measured at cost and subsequently at cost less any accumulated depreciation, and impairment losses. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.