L.V. TECHNOLOGY Public Company Limited Annual Report 2011
Notes to the financial statements For the years ended 31 December 2011 and 2010
(e) Inventories Inventories are measured at the lower of cost and net realisable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs to complete and to make the sale.
(f) Construction contracts Construction contracts work in progress represents the gross unbilled amount expected to be collected from customers for contract work performed to date. It is measured at cost plus profit recognised to date less progress billings and recognised losses. Cost includes all expenditure related directly to specific projects and an allocation of fixed and variable costs incurred in the Groupâ€™s contract activities based on normal operating capacity. Construction contracts work in progress is presented separately under current assets in the statement of financial position for all contracts in which costs incurred plus recognised profits exceed progress billings If progress billings exceed costs incurred plus recognised profits, then the difference is presented as excess of progress billings over construction contracts work in progress under current liabilities in the statement of financial position.
(g) Investments Investments in subsidiaries, jointly-controlled entities and associates Investments in subsidiaries, jointly-controlled entities and associates in the separate financial statements of the Company are accounted for using the cost method. Investments in associates and jointly-controlled entities in the consolidated financial statements are accounted for using the equity method.
(h) Equipment Recognition and measurement Owned assets Equipment are stated 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 the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
Published on Apr 11, 2012