Annual Report 2021

203 2021 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 13 Investment properties, investment property under development, interest in leasehold land and other property, plant and equipment (continued) (e) In 2021, subsidies totalling $97,863,000 (2020: $18,046,000) were received or receivable from the HKSAR Government for purchase of diesel-electric hybrid buses and electric buses (“the Buses”) and for installation of facilities at bus stops and termini. The purposes of the subsidies are to encourage the use of the Buses by granting financial assistance to franchised public bus operators to purchase the Buses for trial and to expedite the installation of facilities for the convenience of passengers. The Group has to use the Buses for trial on certain routes agreed with the HKSAR Government for two years. The subsidies received or receivable have been deducted from the carrying amount of the assets directly in accordance with the accounting policy set out in note 1(k). 14 Intangible assets Passenger service licences and transport operating rights $’000 Cost: At 1 January 2020, 31 December 2020 and 1 January 2021 364,964 Additions 54,765 At 31 December 2021 419,729 Accumulated amortisation: At 1 January 2020, 31 December 2020, 1 January 2021 and 31 December 2021 – Net book value: At 31 December 2021 419,729 At 31 December 2020 364,964 In respect of those passenger service licences and transport operating rights of the Group that are regarded as having indefinite useful lives, there is no foreseeable limit to the period over which these assets are expected to generate cash flows for the Group. Intangible assets that are regarded as having indefinite useful lives have been allocated to the cash-generating unit of non-franchised transport operations for the purpose of impairment testing. Details of impairment testing are set out in note 15 to the financial statements.