NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 33 PROFIT FOR THE YEAR (CONT’D) Group Note 2022 2021 $’000 $’000 Restated* Other expenses (cont’d) (Reversal of impairment losses)/Impairment losses recognised on: – property, plant and equipment 4 (28,113) (95,375) – investment properties 5 35,728 2,064 – trade receivables and accrued receivables 42 22,389 (2,448) – amounts owing by associates 8 339 – Loss on dilution of interest in an associate 1,378 2,002 Property, plant and equipment and investment properties written off 15,987 9,216 Provisions made 29 26,938 66,108 Finance income Interest income under the effective interest method: – amounts owing by associates at amortised cost 67 63 – amounts owing by joint ventures at amortised cost 19,523 18,539 – unquoted debt investment at amortised cost – 2,064 – cash and cash equivalents 29,726 10,800 – others 3,465 4,774 Fair value gains on financial derivatives designated at FVTPL (net) 30,047 – Net exchange gain 8,863 – 91,691 36,240 Less: Finance income capitalised in development properties (137) (34) Total finance income 91,554 36,206 Finance costs Amortisation of transaction costs capitalised 6,428 8,051 Interest expense: – term loans and bank loans 179,619 122,189 – bonds and notes 72,366 76,922 – amounts owing to fellow subsidiaries 2,947 2,786 – amounts owing to joint ventures – 958 – financial derivatives at FVTPL 4,549 8,739 – lease liabilities 20,127 10,240 – others 11,821 10,138 Fair value losses on financial derivatives designated at FVTPL (net) – 27,069 Fair value losses on financial assets mandatorily measured at FVTPL (net) 38,323 2,852 Net exchange loss – 18,943 Unwinding of discount on non-current liabilities 251 276 Finance costs capitalised in: – development properties# (30,863) (37,182) – property, plant and equipment (1,468) (3,297) – investment properties (19,420) (10,861) Total finance costs 284,680 237,823 Net finance costs 193,126 201,617 # Relates to development properties for which revenue is recognised at a point in time. Borrowing costs on development properties where revenue is recognised over time is charged to profit or loss, as incurred. * Refer to Note 47 33 PROFIT FOR THE YEAR The following items have been included in arriving at profit for the year: Group Note 2022 2021 $’000 $’000 Restated* Other income Gain on disposal of subsidiaries 40 501,726 – Recognition of deferred gain on subsidiary disposed in prior years 28 6,635 – Negative goodwill on acquisition of subsidiaries 40 48 35,553 Gain on liquidation of subsidiaries – 914 Management fees and miscellaneous income 17,348 15,616 Profit on sale of property, plant and equipment and investment properties 1,257,275** 35,896 1,783,032 87,979 Staff costs Contributions to defined contribution plans 44,485 36,729 Increase/(Decrease) in liability for defined benefit plans 26 654 (17) (Decrease)/Increase in liability for short-term accumulating compensated absences (3,841) 1,227 Wages and salaries 689,952 541,516 731,250 579,455 Less: Staff costs capitalised in: – development properties (14,101) (7,458) – investment properties (1,228) (824) – property, plant and equipment (226) (268) Wage grant^ (3,002) (28,961) 712,693 541,944 Other expenses Amortisation of intangible assets 158 272 Audit fees paid to: – auditors of the Company 3,509 3,632 – other auditors 3,559 3,440 Non-audit fees: – auditors of the Company 1,238 1,812 – other auditors 2,044 3,368 Depreciation of: – property, plant and equipment# 4 160,314 177,280 – investment properties 5 115,954 107,457 Direct operating expenses arising from rental of investment properties (excluding depreciation) 109,551 108,149 Allowance made for foreseeable losses on development properties (net) 13 61,766 5,641 ** Mainly relates to pre-tax profit on the disposal of the Millennium Hilton Seoul and the collective sale of Tanglin Shopping Centre and Golden Mile Complex. ^ Relates to wage grants received or receivable by the Group under the wage subsidy programmes introduced by various governments in the countries where the Group operates, in response to the COVID-19 pandemic. # Included grant income of $404,000 (2021: $758,000) deducted against depreciation of right-of-use assets. CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 FINANCIALS 198 199
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