DBS Annual Report 2015 124
2.13 Properties and other fixed assets
Properties including investment properties and other fixed assets are stated at cost less accumulated depreciation and
impairment losses.
Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.
Generally, the useful lives are as follows: Buildings
50 years or over the remaining lease period, whichever is shorter.
Leasehold land 100 years or over the remaining
lease period, whichever is shorter. Leasehold land where the unexpired
lease period is more than 100 years is not depreciated.
Computer software 3 – 5 years
Office equipment, 5 – 10 years
furniture and fittings Please refer to Note 25 for the details of properties and other
fixed assets and their movements during the year.
2.14 Financial liabilities
Initial recognition, classification and subsequent measurement Financial liabilities are initially recognised at fair value. The Group
generally classifies and measures its financial liabilities in accordance with the purpose for which the financial liabilities are incurred and
managed. Accordingly:
financial liabilities at fair value through profit or loss if they are incurred for the purpose
of repurchasing in the near term “
held for trading”, and
this may include debt securities issued and short positions in securities for the purpose of ongoing market-making or trading.
Financial liabilities at fair value through profit or loss can also be designated by management on initial recognition “
designated at fair value through profit or loss” if doing so eliminates or
significantly reduces measurement or recognition inconsistencies that would otherwise arise, or if the financial liability contains an
embedded derivative that would otherwise need to be separately recorded. Financial liabilities in this classification are usually within
the “Treasury” segment.
Realised or unrealised gains or losses on financial liabilities held for trading and financial liabilities designated under the fair
value option, except interest expense, are taken to “Net trading income” in the income statement in the period they arise. Interest
expense on structured investment deposits at fair value through profit or loss is also presented together with other fair value
changes in “Net trading income”.
Please refer to Note 2.8 for the accounting policy on derivatives.
amortised cost using
the effective interest method. These comprise predominantly the Group’s “Deposits and balances from customers”, “Due to
banks” and “Other debt securities”.
Please refer to Note 14 for further details on the types of financial liabilities classified and measured as above.
Determination of fair value The fair value of financial liabilities is the price that would be paid
to transfer the liability in an orderly transaction between market participants at the measurement date.
Please refer also to Note 39 for further fair value disclosures.
Derecognition A financial liability is derecognised from the balance sheet when
the obligation specified in the contract is discharged, cancelled or expired.
2.15 Loan commitments, letters of credit and
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