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Appendix
Notes to the Financial Statements
Year ended 31 December 2014
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(cont’d)
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The carrying amounts of the Group’s non-mnancial assets, other than investment properties, development
properties for sale and stocks and deferred tax assets, are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts
are estimated. For goodwill, the recoverable amount is estimated at each reporting date, and as and when
indicators of impairment are identimed, an impairment loss is recognised if the carrying amount of an asset or
its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount
of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in
use, the estimated future cash nows are discounted to their present value using a pre-tax discount rate that
renects current market assessments of the time value of money and the risks specimc to the asset or CGU.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into
the smallest group of assets that generate cash innows from continuing use that are largely independent of
the cash innows of other assets or CGU. Subject to an operating segment ceiling test, for the purposes of
goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level
at which impairment is tested renects the lowest level at which goodwill is monitored for internal reporting
purposes. Goodwill acquired in a business combination is allocated to groups of CGU that are expected to
benemt from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated
recoverable amount. Impairment losses are recognised in promt or loss. Impairment losses recognised in
respect of CGUs are allocated mrst to reduce the carrying amount of any goodwill allocated to the units and
then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indication that the loss has decreased
or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
Goodwill that forms part of the carrying amount of an investment in an associate or a joint venture is not
recognised separately, and therefore is not tested for impairment separately. Instead, the entire amount of
the investment in an associate or a joint venture is tested for impairment as a single asset when there is
objective evidence that the investment in an associate or a joint venture may be impaired.
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All short term employee benemts, including accumulated compensated absences, are measured on an
undiscounted basis and are recognised in the period in which the employees render their services.
The Group’s obligation in respect of long-term employee benemts is the amount of future benemt that employees
have earned in return for their service in the current and prior periods. That benemt is discounted to determine
its present values.
A provision is recognised for the amount expected to be paid under cash bonus or promt-sharing plans if the
Group has a present legal or constructive obligation to pay this amount as a result of past service provided
by the employee and the obligation can be estimated reliably.
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Contributions to post-employment benemts under demned contribution plans are recognised as an expense
in promt or loss in the period during which the related services are rendered by employees.
