NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.14 INVESTMENTS IN DEBT AND EQUITY SECURITIES (CONT’D)
The fair value of investment securities that are actively traded in organised financial markets is determined by reference
to quoted market bid prices at the close of business at the end of the reporting period. For investment securities where
there is no active market, fair value is estimated using a valuation technique based on certain assumptions that are not
supported by observable market prices or rates. Management believes the estimated fair values resulting from the valuation
technique which are recorded in the balance sheet are reasonable and the most appropriate at the end of the reporting
period. These investment securities shall, however, be measured at cost less impairment losses if their fair values cannot
be reliably estimated.
2.15 BASE INVENTORY
Base inventory is the base recirculating inventory in the smelting process. The value represents the lower of estimated
recoverable amounts and cost of 381 tonnes of metallic tin content.
2.16 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
Non-current assets and disposal group classified as held for sale are measured at the lower of their carrying amount and
fair value less costs to sell. Non-current assets and disposal group are classified as held for sale if their carrying amounts
will be recovered principally through a sale transaction rather than through continuing use. A component of the Group
is classified as a “discontinued operation” when the criteria to be classified as held for sale have been met or it has been
disposed of and such a component represents a separate major line of business or geographical area of operations or
is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations.
Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised.
2.17 DEVELOPMENT PROPERTIES
Development properties are properties acquired or being constructed for sale in the ordinary course of business, rather
than to be held for the Group’s own use, rental or capital appreciation.
Development properties are measured at the lower of cost and net realisable value.
Non-refundable commissions paid to sales or marketing agents on the sale of real estate units are expensed when incurred.
Net realisable value of development properties is the estimated selling price in the ordinary course of business, based
on market prices at the reporting date and discounted for the time value of money if material, less the estimated costs of
completion and the estimated costs necessary to make the sale.
The costs of development properties recognised in profit or loss on disposal are determined with reference to the
specific costs incurred on the property sold and an allocation of any non-specific costs based on the relative size of the
property sold.
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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
