59
/ MTQ CORPORATION LIMITED /
ANNUAL REPORT
2014/2015
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Intangible assets (cont’d)
(a)
Goodwill (cont’d)
Where goodwill forms part of a cash-generating unit and part of the operation within that cash-generating
unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying
amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed
of in this circumstance is measured based on the relative fair values of the operations disposed of and the
portion of the cash-generating unit retained.
Goodwill and fair value adjustments arising on the acquisition of foreign operation on or after 1 January 2005
are treated as assets and liabilities of the foreign operations and are recorded in the functional currency of
the foreign operations and translated in accordance with the accounting policy set out in Note 2.5.
Goodwill and fair value adjustments which arose on acquisitions of foreign operation before 1 January 2005
are deemed to be assets and liabilities of the Company and are recorded in Singapore dollars at the rates
prevailing at the date of acquisition.
(b)
Other intangible assets
Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in
a business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible
assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method are reviewed at least at each financial year-end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied in the
asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as
changes in accounting estimates.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between
the net proceeds from disposal and the carrying amount of the asset and are recognised in profit or loss
when the asset is derecognised.
2.14 Investment properties
Investment properties are properties that are either owned by the Group or leased under a finance lease that
are held to earn rentals or for capital appreciation, or both, rather than for use in the production or supply of
goods or services, or for administrative purposes, or in the ordinary course of business. Investment properties
comprise completed investment properties and properties that are being constructed or developed for future use
as investment properties. Properties held under operating leases are classified as investment properties when the
definition of an investment property is met.
Investment properties are initially measured at cost, including transaction costs. The carrying amount includes the
cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria
are met.
Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and
accumulated impairment losses.
