Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 218 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 16. PROPERTY, PLANT AND EQUIPMENT (continued) The carrying amounts of hotels, other properties and car parks shown above comprise: 2019 2018 HK$’000 HK$’000 Leasehold land and building in HK Long leases 290,457 300,002 Medium-term leases 2,945,046 2,989,785 Freehold land and building outside HK 3,442,917 3,001,140 Building on leasehold land outside HK Long leases 1,657,173 284,875 Medium-term leases 719,063 817,728 9,054,656 7,393,530 Leasehold lands are depreciated over the terms of the lease of land. Completed buildings are depreciated on a straight-line basis over their useful lives ranging from 25 to 50 years or the remaining term of the lease of land of 25 to 65 years, whichever is the shorter. Other items of property, plant and equipment are depreciated on a straight-line basis at the rates of 10% to 20% per annum. No depreciation is provided on freehold land and buildings under development. The Group is in the process of obtaining the title of certain completed hotel properties located outside Hong Kong with carrying amount of HK$111,058,000 (2018: HK$112,791,000). Included in leasehold improvements, furniture, fixtures and equipment is an aggregate carrying amount of HK$23,664,000 (2018: HK$18,764,000) in respect of assets held under finance leases. 17. PREPAID LEASE PAYMENTS 2019 2018 HK$’000 HK$’000 Balance at beginning of the year 533,321 500,957 Amortisation (10,387) (9,626) Transfer to investment properties – (3,322) Exchange alignment (25,698) 45,312 Balance at end of the year 497,236 533,321 The carrying value represents leasehold land outside HK: Long-term leases with lease period of 99 years 283,569 293,681 Medium-term leases with lease period of 35 years 213,667 239,640 497,236 533,321 Analysed for reporting purposes as: Non-current asset 483,454 518,752 Current asset 13,782 14,569 497,236 533,321