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Notes to the Consolidated Financial Statements

31st March 2016

6 OTHER INCOME

2016 2015
HK$’000 HK$’000

Fair value gain on investment properties (Note 15) 60 10,460
Rental income from investment properties 8,373 8,489
Amortisation of deferred gain (Note 29) 1,454 –
Others 242 36

10,129 18,985

7 EXPENSES BY NATURE

Expenses included in cost of goods sold, selling expenses, administrative expenses and other operating
expenses are analysed as follows:

2016 2015
HK$’000 HK$’000

Amortisation of intangible assets (Note 17) 7,800 7,800
Amortisation of leasehold land and land use rights (Note 16) 289 292
Auditor’s remuneration 2,100 2,090
Cost of inventories 2,151,804 1,924,405
Depreciation of property, plant and equipment (Note 14) 34,645 33,369
Employee benefit expenses (including directors’ emoluments)
(Note 8) 232,058 212,827
Severance pay (Note 8) 13,279 19,940
Gain on disposal of plant and equipment (40) (6,888)
Operating lease rental in respect of land and buildings 29,902 30,439
Research and development costs 17,420 13,858
Impairment of property, plant and equipment – 4,964

ALCO HOLDINGS LIMITED ANNUAL REPORT 2016 59