Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 206 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8. OTHER GAINS AND LOSSES 2019 2018 HK$’000 HK$’000 Change in fair value of investment properties 672,530 277,389 Change in fair value of financial assets at FVTPL (63,837) (36,959) Change in fair value of derivative financial instruments 144,738 (6,153) Net foreign exchange gains (losses) 41,027 (31,259) Gain on disposal of a subsidiary – 320,130 Gain on disposal of associates 51,677 – Gain on dissolution of subsidiaries 36,552 – Allowance for credit loss (12,278) (11,387) Reversal of impairment loss recognised on interest in a joint venture – 11,715 Impairment loss recognised on deposits for acquisition of property, plant and equipment (Note) – (30,000) Gain on disposal of property, plant and equipment 509 11,082 Bargain purchase gain (note 38(a)) 108,000 – 978,918 504,558 9. FINANCE COSTS 2019 2018 HK$’000 HK$’000 Interest on: Bank borrowings 550,497 343,763 Other loans 21,955 975 Interest on notes and bonds 143,768 154,954 Amortisation of front-end fee 11,527 11,729 Others 32,528 1,602 Total interest costs 760,275 513,023 Less: amounts capitalised to properties under development: – properties for owners’ occupation (55,263) (6,965) – properties for sale (337,388) (277,103) 367,624 228,955 Borrowing costs capitalised during the year which arose on the general borrowing pool of the Group were calculated by applying a capitalisation rate of 1.99% to 4.50% (2018: 2.54% to 6.17%) per annum to expenditure on the qualifying assets.