NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
60
ANNUAL REPORT 2015/2016
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 of 5 years 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.
