4.3
4.4
4.5
4.6
4.7
4.8
4.9
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4.2.2 Expenses Cost of sales are based on the estimated cost of real estate project and recognized on the percentage of sale revenue accounted from the respective lot. Cost of construction are recognized in accordance with the percentage of work completed based on total estimated costs. Provision for anticipated losses on construction work is made in the accounts in full when the possibility of loss is ascertained. 4.2.3 Revenue from leasehold rights is recognized over the lives of the leases. 4.2.4 The Company and subsidiaries recognize other revenues and expenses on an accrual basis. Cash and Cash Equivalents Cash and cash equivalents consist of cash in hand, cash at bank, and all highly liquid investments with an original maturity of three months or less and not subject to withdrawal restrictions. Allowance for Doubtful Accounts The Company and its subsidiaries provide allowance for doubtful accounts equal to the estimated collection losses that may be incurred in the collection of all receivables. The estimated losses are based on historical collection experience coupled with a review of the current status of existing receivables. Inventories Inventories are real estate for sale which are stated at cost or net realizable value, whichever is lower. Land developing for sales included the cost of raw land, interest on related loans, and development costs, net of costs of lots sold or net realizable value, whichever is lower. The Company and its subsidiaries compute the cost of land developing for sales based on the percentages of revenue recognized from the respective lots. Construction materials are valued at cost (first-in, first-out method) or net realizable value, whichever is lower. The Company and its subsidiaries ceased a capturing of the related interest as part of inventories cost when construction of the project had been finished or it had been suspended in unusual event. Property development Property development is stated at cost. Costs include land, land developing, construction and direct expense including interest. Capitalization of interest cost into property development project shall calculate by multiplying the determined interest rate to incurring cost of property development project. The cost comprised of cost of land and real estate developing cost. The Company ceases to capture the related interest as part of property development cost when construction of the project has been finished or suspended. Investments in subsidiary and associated companies Investments in subsidiary and associated companies are stated at cost method. The Company recognizes gain or loss on disposal of the investment in the statement of income and also impairment loss on the investment. Consolidated financial statement ‡Investments in subsidiaries in the separate financial statements of the Company are accounted for using the cost method. (Under this method, the investment is recorded at cost with the excess of cost over the attributable net assets at the date of acquisition). If the Company has incurred obligations to the subsidiaries or to satisfy obligations of the said subsidiaries that the Company has guaranteed of otherwise committed, the Company will estimate the provision for the excess losses on the investment and were jointly stated as a Non-Current Liabilities in balance sheet under the caption of çProvision of estimated liabilities to a subsidiaryé. Positive goodwill The net asset value of an associated company that is lower than the acquisition cost or cost of investment is recorded as çPositive goodwillé under the caption çInvestment in associateé. This positive goodwill is be amortized as an expense over a period of 20 years by straight - line method. Since the year 2008, the Company has stopped recognizing goodwill as amortization expenses and to consider impairment loss instead. Investments in related parties and other companies Long - term investments in related parties and other companies are stated at cost (less allowance for impairment). The Company recognizes impairment loss as expense on the investment in the statement of income. Property, plant and equipment/Leasehold right Depreciation of property and equipment has been computed by the straight-line method over the estimated useful lives of the assets as follows : Years Golf course 30 Buildings and structures 20 Transportation equipment 5 Machinery and equipment 5 Furniture, fixtures and office equipment 5 Leasehold right and utilizable right on building and improvement are stated at cost less accumulated amortization. Amortization on leasehold rights are calculated to be expenditures by the straight - line method over the term of contract 30 years long.
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