v3.26.1
Provision for reinstatement costs
12 Months Ended
Dec. 31, 2025
Provision For Reinstatement Costs  
Provision for reinstatement costs

 

24. Provision for reinstatement costs

 

Under the terms of operating leases in respect of properties entered into try by the Group, the Group is required to reinstate the properties to the original physical condition at the end of the respective leases. Provision is therefore made for the best estimate of the expected costs that related to the restoration of the alternations made to the properties.

 

Schedule of provision for reinstatement costs 

   2025   2025   2024 
   US$   HK$   HK$ 
             
At beginning of year   680,945    5,300,000    5,370,000 
Provision   349,466    2,720,000    1,480,000 
Utilisation for the year   -    -    (200,000)
Write-off upon the expiration of leases   (349,466)    (2,720,000)    (1,350,000)
                
At end of year   680,945    5,300,000    5,300,000 
Less: portion classified as current liabilities   (214,562)   (1,670,000)   (2,520,000)
                
    466,383    3,630,000    2,780,000