CapitaLand Ascott Trust 158 Notes to the Financial Statements For the financial year ended 31 December 2025 Any surplus arising on the revaluation is recognised in OCI or Stapled Securityholders’ funds (as the case may be), except to the extent that the surplus reverses a previous revaluation deficit on the same asset recognised in the Statement of Total Return, in which case the credit to that extent is recognised in the Statement of Total Return. Any deficit on revaluation is recognised in the Statement of Total Return except to the extent that it reverses a previous revaluation surplus on the same asset, in which case the debit to that extent is recognised in OCI or Stapled Securityholders’ funds (as the case may be). The gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in the Statement of Total Return. (ii) Subsequent expenditure Subsequent expenditure relating to property, plant and equipment that has already been recognised is added to the carrying amount of the asset if it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing asset, will flow to the Stapled Group and its cost can be measured reliably. All other subsequent expenditure is recognised as an expense in the period in which it is incurred. (iii) Depreciation Depreciation is recognised from the date that the property, plant and equipment are installed and are ready for use. Depreciation on property, plant and equipment is recognised in the Statement of Total Return on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment as follows: Land and buildings - 30 to 83 years Plant and machinery - 2 to 15 years Renovation - 8 to 12 years Motor vehicles - 5 to 8 years Office equipment, computers and furniture - 2 to 10 years Freehold land and assets under construction are stated at cost and are not depreciated. The assets’ residual values, useful lives and depreciation methods are reviewed at each reporting date, and adjusted if appropriate. 3.5 Intangible assets Goodwill For business combinations, the Stapled Group measures goodwill as at acquisition date based on the fair value of the consideration transferred (including the fair value of any pre-existing equity interest in the acquiree) and the recognised amount of any non-controlling interests in the acquiree, less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed. When the amount is negative, a gain on bargain purchase is recognised in the total return. Goodwill is subsequently measured at cost less accumulated impairment losses. Goodwill arising from the acquisition of subsidiaries is included in intangible assets. Goodwill is tested annually for impairment as described in Note 3.7. 3 Material Accounting Policies (continued) 3.4 Property, plant and equipment (continued) (i) Recognition and measurement (continued)
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