55
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
3 SIGNIFICANTACCOUNTING POLICIES (CONT’D)
3.10 Impairment (cont’d)
(ii) Non-financial assets (cont’d)
The Group’s corporate assets do not generate separate cash inflows and are
utilised by more than one CGU. Corporate assets are allocated to CGUs on
a reasonable and consistent basis and tested for impairment as part of the testing
of the CGU to which the corporate asset is allocated.
Impairment losses are recognised in profit or loss. Impairment losses recognised in
respect of CGUs are allocated first to reduce the carrying amount of any goodwill
allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of
the other assets in the CGU (group of CGUs) 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 indications 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 is
not recognised separately, and therefore is not tested for impairment separately.
Instead, the entire amount of the investment in an associate is tested for
impairment as a single asset when there is objective evidence that the investment
in an associate may be impaired.
3 SIGNIFICANTACCOUNTING POLICIES (CONT’D)
3.11 Employee benefits
(i)
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an
entity pays fixed contributions into a separate entity and will have no legal or
constructive obligation to pay further amounts. Obligations for contributions
to defined contribution pension plans are recognised as an employee benefit
expense in profit or loss in the periods during which related services are rendered
by employees.
(ii) Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis
and are expensed as the related service is provided. A liability is recognised for the
amount expected to be paid under short-term cash bonus or profit-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.
(iii) Share-based payment transactions
The grant date fair value of equity-settled share-based payment awards granted
to employees is recognised as an employee expense, with a corresponding
increase in equity, over the period that the employees unconditionally become
entitled to the awards. The amount recognised as an expense is adjusted to reflect
the number of awards for which the related service and non-market performance
conditions are expected to be met, such that the amount ultimately recognised
as an expense is based on the number of awards that meet the related service
and non-market performance conditions at the vesting date. For share-based
payment awards with non-vesting conditions, the grant date fair value of the
share-based payment is measured to reflect such conditions and there is no true-
up for differences between expected and actual outcomes.
