2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED) 2.24 Non-current assets as held for sale Non-current assets are classified as held-for-sale when their carrying amount will be recovered principally through a sale transaction rather than through continuing use and the sale is highly probable with the asset being available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to be completed within one year from the date of classification. They are measured at the lower of the carrying amount and fair value less costs to sell. Any impairment loss on initial classification and subsequent measurement is recognised as an expense. Any subsequent increase in fair value less costs to sell (not exceeding the accumulated impairment loss that has been previously recognised) is recognised in profit or loss. Depreciation and amortisation for a non-current asset ceases once it is classified as held for sale or while it is part of a disposal group classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale shall continue to be recognised. 3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The Group made judgements, estimates and assumptions about the carrying amounts of assets and liabilities that were not readily apparent from other sources in the application of the Group’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors that are considered to be reasonable under the circumstances. Actual results may differ from the estimates. 3.1 Critical judgements made in applying the Group’s accounting policies Determination of the classification of Hyundai-Keong Hong JV Limited Partnership Management assesses the substance of joint arrangements to determine the classification as either joint ventures or joint operations. This involves evaluating whether the Group has rights to the net assets (joint venture) or specific assets, liabilities, expenses, and revenue (joint operation). The Group holds a 30% interest in Hyundai-Keong Hong JV Limited Partnership. The investee’s financial position and performance are recognised in the Company’s accounts using the proportionate method, based on shareholding proportion, construction cost proportion, or specific actual costs borne by the relevant parties. The Group has assessed and determined that its joint arrangement with Hyundai-Keong Hong JV Limited Partnership grants the Group rights to and obligations for specific assets, liabilities, revenues, and expenses. Therefore, it is classified as a joint operation. Determination of significant influence over an associate, Katong Holdings Pte Ltd (“KHPL”) The Group held 20% of the voting rights in one of its associates, KHPL as at 30 September 2024. In consideration of the relatively voting rights, the Group considered both SFRS(I) 1-28 Investments in Associates and Joint Ventures and SFRS(I) 10 Consolidated Financial Statements to determine whether it has significant influence over KHPL. The Group considered factors, including but not limited to, the size of its holding of voting rights relative to the size and dispersion of holdings of the other vote holders, its representation at shareholders’ and directors’ meetings and the voting patterns, the composition of key management personnel in KHPL, and contractual arrangements. Consequently, the Group assessed that it has significant influence over KHPL and classified the investee entity as an associate. 85 ANNUAL REPORT 2024 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2024
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