NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
14.
INVESTMENT PROPERTIES (CONT’D)
(d)
Hak Pengelolaan (“HPL”) Title
A HPL Title provides the land owner the “right to manage” a land created by the state. The holder of a
Right to Manage title may use the granted executing authority for the purpose of land utilisation and
allocation planning, utilisation of the land related to the role of such Indonesian government entities,
partial assignment of the land to third parties and/or landmanagement in cooperation with third parties.
(e)
Kiosks Sale and Purchase Binding Agreement
This agreement could be entered into prior to entering into a deed of sale and purchase of land. Under
a Kiosks Sale and Purchase Binding Agreement, each of the parties agrees on the terms and conditions
for the sale and purchase but this agreement does not have the effect of transferring the ownership
of the land to the other party. Instead, subject to certain conditions in the agreement, the vendor is
bound to sell the land and the purchaser is bound to purchase the land. These agreements shall be
executed in good faith and cannot be revoked except by mutual agreement or pursuant to certain
reasons which have been legally declared as sufficient.
The investment properties are leased out to tenants under operating leases.
Certain investment properties at a carrying value of $463,025,000 (2014: $478,872,000) are pledged as security
for the bank facilities (Note 22A).
15.
INTANGIBLE ASSETS
Group
2015
2014
$’000
$’000
Cost:
At the beginning of the year
34,033
–
Additions
3,549
34,033
Exchange differences adjustments
(1,108)
–
At the end of the year
36,474
34,033
Accumulated amortisation:
At the beginning of the year
–
–
Amortisation for the year
11,374
–
Exchange differences adjustments
(12)
–
At the end of the year
11,362
–
Net book value:
At the beginning of the year
34,033
–
At end of year
25,112
34,033
Intangible assets represent the unamortised aggregate rental guarantee amounts receivable by the Group from
master lease agreements for its 100% interest acquired in LippoMall Kemang in 2014, and Palembang Icon and Lippo
Plaza Batu in 2015 respectively (Note 30). The remaining rental guarantee periods are for 2 to 24 (2014: 3) years.
LIPPO MALLS INDONESIA RETAIL TRUST
106
