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8 Land Use Rights

The Group’s interest in land use rights represented prepaid operating lease payments in the PRC with lease periods between 10 to 50 years. During the year, the Group sold all its land use rights relate to “Buildings” in Note 6 and “Investment Properties” in Note 7.

US$'000 2016 2015
At 1 January 2,686 2,894
Amortisation (38) (73)
Disposal (2,612) -
Exchange difference (36) (135)
At 31 December - 2,686

Accounting policy

The upfront prepayments made for land use rights are expensed in the income statement on a straight line basis over the period of the lease or, when there is impairment, are recognised in the income statement immediately.

Please refer to Note 5 for the accounting policy on impairment.


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