1977-1978 — Page 26

KOWLOON-CANTON RAILWAY

Notes to the Accounts

1. ACCOUNTING POLICIES

FIXED ASSETS

For all civil engineering works and buildings, the costs brought into account at the date of commission comprise the actual expenditure in the project vote. The costs of all other items of special expenditure are brought into account at date of commission or total costs to-date except for the land and buildings at Hung Hom which have been assessed by the Rating and Valuation Department.

DEPRECIATION

Depreciation is provided for on a straight-line basis at the following rates :-

Building

Bridges

Line Protection

2%

2%

2%

Tracks

2%

Signals and Switches

2%

Telephones and Telegraphs

5%

Rolling Stock and Plant

2%

20%

Land and tunnels are regarded as non-depreciating assets.

2.

PASSENGER SERVICES

This is the income from passenger train working including first and ordinary class fares, excess fares, platform tickets, golfing tickets and air-conditioning tickets.

3.

GOODS SERVICES

This is the income from freight traffic including terminal and handling charges.

4.

RENT AND MISCELLANEOUS RECEIPTS

5.

This includes rent from shops and other special rentals, advertising tenders and workshop manufacturing.

SUBSIDY FOR SCHOLAR TICKETS

This is the subsidy calculated from the sale of fixed rate scholar tickets in relation to the equivalent value of adult monthly tickets used between particular railway stations.