59
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
2.
Significant accounting policies
(continued)
2.10 Investments in subsidiaries
Investments in subsidiaries and joint venture are carried at cost less accumulated impairment
losses in the Company’s balance sheet. On disposal of such investments, the difference between
disposal proceeds and the carrying amounts of the investments are recognised in profit or loss.
2.11 Impairment of non-financial assets
(a)
Goodwill
Goodwill recognised separately as an intangible asset is tested for impairment annually and
whenever there is indication that the goodwill may be impaired.
For the purpose of impairment testing of goodwill, goodwill is allocated to each of the Group’s
cash-generating-units (“CGU”) expected to benefit from synergies arising from the business
combination.
An impairment loss is recognised when the carrying amount of a CGU, including the goodwill,
exceeds the recoverable amount of the CGU. The recoverable amount of a CGU is the higher
of the CGU’s fair value less cost to sell and value-in-use.
The total impairment loss of a CGU is allocated first to reduce the carrying amount of
goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis
of the carrying amount of each asset in the CGU.
An impairment loss on goodwill is recognised as an expense and is not reversed in a
subsequent period.
(b)
Property, plant and equipment
Investments in subsidiaries and joint venture
Property, plant and equipment and investments in subsidiaries and joint venture are tested
for impairment whenever there is any objective evidence or indication that these assets may
be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair
value less cost to sell and the value-in-use) is determined on an individual asset basis unless
the asset does not generate cash inflows that are largely independent of those from other
assets. If this is the case, the recoverable amount is determined for the CGU to which the
asset belongs.
