63
Annual Report 2015
TEHO INTERNATIONAL INC LTD.
5 INTANGIBLE ASSETS (CONT’D)
Impairment test (cont’d)
(iv) ECG Property Services Pte. Ltd. and its subsidiaries
2015
2014
Estimated discount rates using post-tax rates that reflect
current market assessments at the risks specific to the
CGUs
10.2% N/A
Estimated selling price
$398 psf
N/A
Cash flow forecasts derived from the most recent
financial budgets and plans approved by management
4 years
N/A
The acquisition of ECG Property Services Pte. Ltd. (“ECG Property Services”) had
given rise to goodwill due to the synergies expected from the acquired business and
the Group’s property development project “The Bay” in Cambodia. In this respect,
the Group has attributed the goodwill arising from the acquisition of ECG Property
Services to “The Bay” project as part of the impairment assessment.
In estimating the gross development value of “The Bay” project, management has
considered numerous factors, including the recent selling prices of comparable
properties, the pricing of surrounding developments, sentiments of the property
market in Cambodia, and broader macro-economic outlook in Cambodia.
The estimated recoverable amount of ECG Property Services, including “The Bay”
project, exceeds the carrying value. Accordingly, no impairment loss is recognised for
the financial year ended 30 June 2015.
6 INVESTMENTS IN SUBSIDIARIES
Company
2015
2014
$
$
Equity investments at cost
34,222,459 34,122,460
Impairment loss
(3,059,283)
–
Cost at the end of the year
31,163,176 34,122,460
During the year, the Company assessed the carrying amount of its investments in subsidiaries
for indications of impairment. Based on this assessment, the Company recognised an
impairment loss of $3,059,283 (2014: Nil) on its investment in a wholly-owned subsidiary.
The recoverable amount of the investment has been determined based on the value in use
(see Note 5(iii)). The impairment loss is charged to profit or loss and recognised in other
operating expenses.
NOTES TO THE
FINANCIAL STATEMENTS
Year ended 30 June 2015
