CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 178 179 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 12 DEVELOPMENT PROPERTIES (CONT’D) (ii) Development properties of the Group recognised as cost of sales, excluding allowance for foreseeable losses, amounted to $961,314,000 (2020: $663,251,000) for the year. (iii) Development properties of the Group with carrying amounts of $1,661,321,000 (2020: $1,639,992,000) are mortgaged to financial institutions to secure credit facilities (refer to note 22). 13 CONTRACT COSTS The amount relates to commission fees paid to property agents for securing sale contracts for the Group’s development properties. During the year, $75,218,000 (2020: $24,556,000) of commission fees paid were capitalised as contract costs. Capitalised commission fees are amortised when the related revenue is recognised. During the year, $32,990,000 (2020: $19,100,000) was amortised. There is no impairment loss in relation to such costs capitalised. 14 CONTRACT ASSETS/(LIABILITIES) Group Company 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Contract assets 402,330 505,231 – – Contract liabilities (724,077) (267,607) – – Significant changes in the contract assets and the contract liabilities balances during the year are as follows: Group 2021 2020 $’000 $’000 Contract liabilities at the beginning of the year recognised as revenue during the year 68,036 112,355 Increases due to cash received, excluding amounts recognised as revenue during the year (525,738) (170,587) Contract assets reclassified to trade receivables (505,231) (242,048) Changes in measurement of progress 402,330 505,231 15 TRADE AND OTHER RECEIVABLES Group Company Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Trade receivables 184,327 172,285 1,310 2,514 Impairment losses (17,025) (25,212) (135) (716) 167,302 147,073 1,175 1,798 Other receivables (a) 544,875 87,108 3,726 2,684 Impairment losses (336,476) (5,129) (1,116) (1,129) 208,399 81,979 2,610 1,555 Accrued rent receivables 41,065 46,857 2,389 1,502 Deposits 11,901 6,485 288 347 Amounts owing by: – subsidiaries 7 – – 5,985,134 5,585,340 – associates 8 1,142 7,610 3 7 – joint ventures 1,293,186 1,656,635 236,649 234,856 Less: Impairment losses (a) (4,431) (328,595) (5,050) (5,050) 9 1,288,755 1,328,040 231,599 229,806 – fellow subsidiaries 16 194 534 – 9 Reimbursement asset (b) 70,773 – – – 1,789,531 1,618,578 6,223,198 5,820,364 Prepayments 56,476 52,632 2,161 1,322 Grant receivables (c) 1,339 1,887 532 701 Tax recoverable 4,557 – – – Derivative financial assets 41 21,511 8,121 21,511 8,121 1,873,414 1,681,218 6,247,402 5,830,508 (a) Included in other receivables of the Group as at 31 December 2021 is a receivable of $395.1 million (2020: $Nil) with related impairment loss of $331.2 million (2020: $Nil) from HCP Group. The amount was reclassified from amounts owing by joint ventures, following the disposal of the Group’s investment in HCP during the year (note 9). (b) The reimbursement asset relates to reimbursements from the buyer of Millennium Hilton Seoul for costs that the Group would incur under certain contracts in respect of the hotel arising from the proposed sale of the hotel (note 28). (c) The grant receivables relate to property tax rebates and other cash grants as part of the COVID-19 relief measures. Information about the Group’s and Company’s exposure to credit risk on other receivables is included in note 41. 16 AMOUNTS OWING BY AND TO FELLOW SUBSIDIARIES Group Company Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Amounts owing by fellow subsidiaries: – trade 15 194 534 – 9 Amounts owing to fellow subsidiaries: – trade 88 17 – 7 – non-trade, interest-free 105,956 – – – – non-trade, interest-bearing 142,604 234,294 – – 30 248,648 234,311 – 7 Fellow subsidiaries are subsidiaries of the immediate holding company. The non-trade amounts owing to fellow subsidiaries are unsecured and repayable on demand. In respect of interest-bearing amounts owing to fellow subsidiaries, interest was charged at 2.00% (2020: 2.00%) per annum.
RkJQdWJsaXNoZXIy ODIwNTc=