NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  11.  Property, plant and equipment (cont’d) Capitalized borrowing costs 12.  Prepaid operating leases Finance leases An impairment loss of Rmb 9,163 (US$1,497) (2012: Rmb 8,026; 2011: Rmb 252) was charged to the consolidated  statement of profit or loss under “Cost of sales” and “Selling, distribution and administrative costs” for the Group’s  property, plant and equipment within the Yuchai segment. The impairment loss for 2012 and 2013 was due to assets  that were not in use. As of December 31, 2013, construction in progress with a carrying amount of Rmb 6.5 million (US$1.1 million) (2012:  Rmb 42.3 million) are pledged to secure bank facilities. The amount of borrowing costs capitalized during the year ended December 31, 2013 was Rmb 27,394 (US$4,476)  (2012: Rmb 33,338). The rate used to determine the amount of borrowing costs eligible for capitalization was 5.56%  (2012: 5.61%) which is the effective interest rate of the specific and any applicable general borrowings that is used for  the purpose of obtaining the qualifying assets. The carrying value of property, plant and equipment held under finance leases at December 31, 2013 was Rmb 52  (2012: Rmb Nil). Additions during the year include Rmb 75 (2012: Rmb Nil) of property, plant and equipment under  finance leases. Leased assets will be returned to lessor at the end of the lease term. Yuchai and its subsidiaries are granted the land use rights of 15 to 50 years in respect of such land. Prepaid operating  leases represent those amounts paid for land use rights to the PRC government. The prepaid operating leases  charged to expense were Rmb 13,148 and Rmb 11,829 (US$1,933) for the years ended December 31, 2012 and 2013,  respectively. 31.12.2012 31.12.2013 31.12.2013 Rmb’000 Rmb’000 US$’000 Current 12,614 12,243 2,000 Non-current 346,568 402,365 65,745 Total 359,182 414,608 67,745 China Yuchai International Limited | Annual Report 2013 89