Page 83 - Forterra

81
NOTES TO THE
FINANCIAL STATEMENTS
10 ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE (CONTINUED)
(1) Following the reclassification in the consolidated statement of financial position and in
accordance with FRS 105 – Non-current Assets Held for Sale and Discontinued Operations
(“FRS 105”) and FRS 40 – Investment Properties, the Properties are stated at fair value and
the subsequent changes in fair value are recognised in profit or loss.
Description of
property Type
Remaining
lease term Location
2012
valuation
$’000
Central Plaza Office/Retail 31 years No. 227, Huangpi
Road North, Huangpu
District, Shanghai
355,730
Beijing Logistics Park Office/Logistics 44 years Shunyi District, Beijing 63,972
The Properties are pledged as security for banking facilities granted to the entities holding
the Properties as at 31 December 2012 (2011: as part of the properties pledged disclosed in
Note 4).
(2) In accordance with FRS 105, the Group ceased to depreciate or amortise the non-current
assets held for sale.
(3) The terms and conditions of outstanding loans and borrowings classified as held for sale are
as follows:
Currency
Nominal
interest rate
per annum
Final
maturity
date
2012
Face
value
2012
Carrying
amount
$’000 $’000
Secured bank loans USD LIBOR + 3.5% 22 Dec 2013 134,474 132,934
Secured bank loans RMB PBOC rate *125% 14 Jan 2014 12,461 12,351
Secured bank loans RMB PBOC rate *105% 29 May 2021 33,359 32,371
180,294 177,656
The loans and borrowings were secured by legal mortgages over the Properties.
Refer to Note 28 for information on the exposure to interest rate, foreign currency and
liquidity risks.
(4) Deferred tax liabilities are recognised based on changes in the carrying value of the Properties
against their tax base. Deferred tax assets of S$505,000 (2011: N.A.) have not been recognised
as uncertainties exist in realisation of such temporary differences.