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FoR BetteR RetuRns Annual Report 2022 153

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.6 Property And Equipment (continued)

capital work-in-progress consist of, amongst others, renovation work-in-progress and information system
enhancement or upgrade-in-progress. such capital work-in-progress as well as non-water colour based paintings
are recognised at cost and are not depreciated until the respective assets are ready for their intended use.

at the end of the reporting period, the group and KWap shall assess for impairment, if any. if such indication
exist, an analysis is performed to determine whether the carrying amount of the asset is fully recoverable. in the
event the carrying amount of the asset exceeds its recoverable amount, the asset value is written down to its
recoverable amount. the policy in relation to the impairment of non-financial assets is as set out in note 2.18.

the residual value, useful life and depreciation method are reviewed at each reporting date and adjusted
prospectively, where appropriate.

an item of property and equipment is derecognised upon disposal or when the future economic benefits are no
longer expected from its use or disposal. gains or losses on the derecognition of assets are recognised in profit
or loss in the year the asset is derecognised, if any.
2.7 Financial Assets

(a) Initial recognition
financial assets are recognised when the group and KWap become a party to the contractual provisions
of the instrument. upon the initial recognition, the group and KWap measure a financial asset at its fair
value including, in the case of a financial asset not measured at fair Value through profit or loss (fVtpl),
transaction costs that are directly attributable to the acquisition of the financial asset or financial liability,
if any. the classification of a financial asset and a financial liability is determined at the initial recognition.

regular way purchases and sales of financial assets are recognised using settlement date accounting.
the method used is applied consistently for all purchases and sales of financial assets that belong to the
same category of financial assets.