2.
(ii) Property
Land cost relating to property which is being developed for investment purposes is included in fixed assets under leasehold land.
Property development expenditure, inclusive of interest, is included as cost of development up to the date when the occupation permit is granted.
(f) Translation of foreign currencies
Foreign currency balances at the year end are translated into Hong Kong Dollars at approximately the market rates of exchange ruling at the balance sheet date except for balances where foreign exchange contracts have been undertaken, in which case the rates applicable to the contracts have been used for the translation. Foreign currency transactions during the year are translated into Hong Kong Dollars at the rates ruling at the transaction dates.
In 1983, all differences on foreign currency translation were dealt with in the profit and loss account except for where the foreign currency liabilities could be clearly identified with a particular fixed asset. In such cases, the resultant exchange differences were included in the book value of the fixed asset. With effect from 1984, all differences on foreign currency translation are reflected in the profit and loss account in accordance with an accounting standard (SSAP 11) on foreign currency translation issued by the Hong Kong Society of Accountants. The overall effect of the change has been to increase the current year's profits by $8,053,000. The effect on the Group's prior years' profits is shown in note 7.
Turnover
Group turnover represents gross income from sales and for services provided to third parties which includes revenue from ferry operations, property income, general trading, travel, ship- building and repairs.
3.
Profit before Taxation
Profit before taxation is arrived at after charging:
Group
1984
1983
interest on
bank loans and overdrafts
11,176
7,545
loans repayable by instalments due within five years other borrowings due within five years
4,983
6,803
140
16,299
14,348
less: capitalised
6,329
7,960
9,970
6,388
provision for diminution in value of interest in associate provision for diminution in value of unquoted investment depreciation
6,874
890
482
432
24,892
20,142
auditors' remuneration
292
246
rent of government piers
1,492
2,987
computer rental
1,022
705
exchange loss
552
and after crediting:
net rental income
18,465
18,163
income from unquoted investment
301
348
exchange gain
9,880
12
13