KUB
九巴服務 日日進步
NOTES ON THE ACCOUNTS
55
1. ACCOUNTING POLICIES
a.
Translation of foreign currencies
Foreign currency loans for purchases of buses and equipment which are hedged by forward foreign exchange contracts are stated at the contracted rates of exchange. With this exception, foreign currency balances at the year end are translated into Hong Kong dollars at the rates of exchange ruling at the balance sheet date and foreign currency transactions during the year are translated into Hong Kong dollars at the rates of exchange ruling at the transaction dates. Differences on foreign currency translation are taken to the profit and loss account.
b.
Spare parts and stores
Spare parts and stores are valued at cost less provision.
Cost includes cost of purchases of materials, direct labour and an appropriate
proportion of overheads.
C.
Depreciation
Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets over their estimated useful lives as follows:-
Land held on long leases with
unexpired term in excess of 50 years
Buildings
Nil
50 years or over the term of the lease
including extension or renewal
period whichever is less
New buses
71% p.a. on cost
Converted or second-hand buses
14% p.a. on cost
Light duty coaches and
other motor vehicles
Plant and machinery, lifts,
fixtures and equipment
Tools
Computer equipment
16% p.a. on cost
14% p.a. on cost
50% p.a. on reducing balance
20% p.a. on cost