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b) Depreciation of Fixed Assets
Depreciation is calculated to write off the cost of fixed assets on a straight line basis over their estimated useful
lives as follows:-
Office Furniture and Equipment and
Staff Residence Furniture and Fittings
Motor Vehicles and Vessel
Office Premises and Staff Quarters
Leasehold Improvements
Operating Equipment and Stand Systems
10% to 20% per annum
25%
per annum
2% per annum
Over the unexpired period
of the lease
Over the number of years
for which the assets are expected to be used
c) Foreign Exchange
Monetary assets and liabilities denominated in foreign currencies are translated into Hong Kong dollars at the mid- market rates of exchange ruling at the balance sheet date. The Council's policy is to cover anticipated payments in foreign currencies by taking out forward exchange contracts. Accordingly, transactions in foreign currencies which have been hedged against forward contracts during the year are translated into Hong Kong dollars at the appropriate contracted rates. Exchange differences arising from year end translation and transactions not covered by forward contracts are dealt with in the Income and Expenditure Account.
d) Assets under Operating Lease
Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Rentals applicable to such operating leases are charged to the Income and Expenditure Account on a straight line basis over the lease term.
3. Fixed Assets
Fixed assets are stated at cost less depreciation and amortisation and are classified as follows:-
Office Furniture, Fittings and
Leasehold Improvements
Office Premises and Staff Quarters
Staff Residence Furniture
Motor Vehicles and Vessel
Operating Equipment and Stand Systems
1990/91 HKD'000
1989/90
HKD'000
31,554
28,082
101,141
69,408
666
574
631
875
49,599
25,918
183,591
124,857
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