Annual Report 2021

135 Notes to the Financial Statements Miramar Hotel and Investment Company, Limited Annual Report 2021 1 Significant accounting policies (Continued) (y) Segment reporting (continued) Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. 2 Critical accounting judgements and key sources of estimation uncertainty In the process of applying the Group’s accounting policies, management has made judgements on valuation of investment properties. Investment properties are included in the statement of financial position at their market value, which are assessed annually by external qualified valuers, after taking into consideration the net rental income allowing for reversionary income potential. The fair value of investment properties reflects, among other things, rental income from current leases and assumptions about rental income from future leases in the light of current market conditions. The fair value also reflects, on a similar basis, any cash outflows that could be expected in respect of the investment properties. 3 Profit before taxation Profit before taxation is arrived at after charging/(crediting): 2021 2020 HK$’000 HK$’000 (a) Staff costs Contributions to defined contribution retirement plan 15,026 17,574 Salaries, wages and other benefits 345,532 365,417 360,558 382,991 The Group’s Hong Kong employees participate in a defined contribution provident fund scheme as defined in the Occupational Retirement Schemes Ordinance (Cap. 426) (the “ORSO Scheme”) or in another defined contribution scheme registered under the Mandatory Provident Fund Scheme Ordinance (Cap. 485) (“MPFO”) (the “MPF Scheme”). Contributions to the ORSO Scheme are made by the participating employers ranging from 5%–11% of, and by the employees at 5%–11% of the employees’ basic monthly salaries. The portion of employers’ contributions to which the employees are not entitled and which has been forfeited shall not be used to reduce the future contributions of the participating employers.