Annual Report 2020

90 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 綜合財務報表附註 FOR THE YEAR ENDED 31ST DECEMBER, 2020 截至二零二零年十二月三十一日止年度 HOP FUNG GROUP HOLDINGS LIMITED 合豐集團控股有限公司 3. 綜合財務報表編製基準及主要會計政策 （續） 主要會計政策 （續） 存貨 存貨以成本及可變現淨值之較低者列賬。存貨成本 採用先進先出法計算。可變現淨值指存貨之估計售 價減完成之全部估計成本及作出銷售所需之成本。 物業、廠房及設備以及使用權資產之減值虧損 於報告期末，本集團會審閱其物業、廠房及設備以 及使用權資產賬面值，以確定有否任何跡象顯示該 等資產出現減值虧損。倘出現任何該等跡象，則會 估計相關資產之可收回金額以釐定減值虧損（如有） 之幅度。 物業、廠房及設備以及使用權資產的可收回金額將 予個別評估。如不可能單獨估計可收回金額，本集 團會估計該資產所屬之現金產生單位之可收回金 額。 在檢測現金產生單位的減值時，於可識別合理一致 的分配基準時，公司資產會分配至個別現金產生單 位，否則有關資產會分配至可識別合理一致分配基 準的現金產生單位最小組別。本集團會釐定公司資 產所屬現金產生單位或現金產生單位組別的可收回 金額，並與相關現金產生單位或現金產生單位組別 的賬面值進行比較。 可收回金額乃公平值扣除出售成本與使用價值之較 高者。於評估使用價值時，估計未來現金流量乃使 用除稅前折現率折現至其現值，該折現率反映現行 市場對貨幣時間值之評估及該資產（或現金產生單 位）（其估計未來現金流未經調整）特有之風險。 3. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Significant accounting policies (Continued) Inventories Inventories are stated at the lower of cost and net realisable value. Cost of inventories are determined on a first-in, first- out method. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Impairment losses on property, plant and equipment and right-of-use assets At the end of the reporting period, the Group reviews the carrying amounts of its property, plant and equipment and right-of-use assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the relevant asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount of property, plant and equipment and right-of-use assets are estimated individually. When it is not possible to estimate the recoverable amount individually, the Group estimates the recoverable amount of the cash- generating unit to which the asset belongs. In testing a cash-generating unit for impairment, corporate assets are allocated to individual cash-generating unit when a reasonable and consistent basis of allocation can be established, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be established. The recoverable amount is determined for the cash-generating unit or group of cash-generating units to which the corporate assets belong, and is compared with the carrying amount of the relevant cash-generating unit or group of cash-generating units. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset (or a cash-generating unit) for which the estimates of future cash flows have not been adjusted.