| ANNUAL REPORT 2015
110
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.8 Intangible assets (cont’d)
(b) Other intangible assets (cont’d)
An intangible asset has an indefinite useful life when based on the analysis of all the relevant factors, there is no
foreseeable limit to the period over which the asset is expected to generate net cash inflows to the Group. Intangible
assets with indefinite useful lives are tested for impairment annually and wherever there is an indication that the
carrying amount may be impaired. Such intangible assets are not amortised. Their useful lives are reviewed at the
end of each reporting period to determine whether events and circumstances continue to support the indefinite
useful life assessment for the asset. If they do not, the change in the useful life assessment from indefinite to finite
is accounted for as a change in accounting estimate in accordance with MFRS 108
Accounting Policies, Changes in
Accounting Estimates and Errors
.
Expenditure on an intangible item that are initially recognised as an expense is not recognised as part of the cost of
an intangible asset at a later date.
An intangible asset is derecognised on disposal or when no future economic benefits are expected from its use. The
gain or loss arising from the derecognition determined as the difference between the net disposal proceeds, if any,
and the carrying amount of the asset is recognised in profit or loss when the asset is derecognised.
Trademarks
Acquired trademarks have finite useful lives and are carried at cost less accumulated amortisation and any
accumulated impairment losses. Amortisation is calculated using the straight line method to allocate the cost of
trademarks over their estimated useful lives of seven (7) to thirty-five (35) years. Cost of renewing trademarks is
recognised in profit or loss as incurred.
4.9 Impairment of non-financial assets
The carrying amounts of assets, except for financial assets (excluding investments in subsidiaries and associates),
inventories, deferred tax assets and investment properties measured at fair value, are reviewed at the end of each
reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset’s
recoverable amount is estimated.
Goodwill and intangible assets that have an indefinite useful life are tested annually for impairment or more frequently
if events or changes in circumstances indicate that the goodwill or intangible asset might be impaired.
The recoverable amount of an asset is estimated for an individual asset. Where it is not possible to estimate the
recoverable amount of the individual asset, the impairment test is carried out on the cash generating unit (“CGU”) to
which the asset belongs. Goodwill acquired in a business combination is from the acquisition date, allocated to each of
the CGU or groups of CGU of the Group that are expected to benefit from the synergies of the combination giving rise
to the goodwill irrespective of whether other assets or liabilities of the acquiree are assigned to those units or groups of
units.
Goodwill acquired in a business combination shall be tested for impairment as part of the impairment testing of CGU
to which it relates. The CGU to which goodwill is allocated shall represent the lowest level within the Group at which
the goodwill is monitored for internal management purposes and not larger than an operating segment determined in
accordance with MFRS 8
Operating Segments
.
The recoverable amount of an asset or CGU is the higher of its fair value less cost to sell and its value in use.
