62
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
5 INTANGIBLEASSETS
Customer
Note Goodwill relationships Orderbook Total
$
$
$
$
Group
Cost
At 1 July 2014
8,376,540 2,605,000 705,000 11,686,540
Acquisitions through
business combinations 28 12,475,753
–
– 12,475,753
At 30 June 2015
and 30 June 2016
20,852,293 2,605,000 705,000 24,162,293
Accumulated amortisation
and impairment losses
At 1 July 2014
– 951,000 705,000 1,656,000
Amortisation
– 521,000
– 521,000
Impairment loss
2,209,048
–
– 2,209,048
At 30 June 2015
2,209,048 1,472,000 705,000 4,386,048
Amortisation
– 521,000
– 521,000
Impairment loss
16,931,227
–
– 16,931,227
At 30 June 2016
19,140,275 1,993,000 705,000 21,838,275
Carrying amounts
At 1 July 2014
8,376,540 1,654,000
– 10,030,540
At 30 June 2015
18,643,245 1,133,000
– 19,776,245
At 30 June 2016
1,712,018 612,000
– 2,324,018
The amortisation expense is charged to profit or loss and included in other operating
expenses.
5 INTANGIBLEASSETS (CONT’D)
Impairment test
The goodwill arose from acquisitions of certain subsidiaries (see below). The value of
the goodwill is determined through purchase price allocation valuations carried out by
the management and independent professional valuers, as appropriate, for separate
acquisitions of subsidiaries.
An assessment is made annually whether goodwill has suffered any impairment loss.
The assessment process is complex and highly judgmental and is based on assumptions
that are affected by expected future market or economic conditions. Judgement is
required in identifying the cash generating units (“CGU”) and the use of estimates.
Goodwill is allocated to CGUs for the purpose of impairment testing. This CGU represents
the Group’s investment in the following subsidiaries. The goodwill is allocated to the
segments as follows:
2016
2015
Marine Property
Marine Property
& Offshore Development
& Offshore Development
Segment Segment Total
Segment
Segment
Total
$
$
$
$
$
$
Group
Name of subsidiaries:
TEHO Engineering
Pte. Ltd.
1,115,562
– 1,115,562 2,515,562
– 2,515,562
TEHO Water &
Envirotec Pte. Ltd.
–
–
– 844,364
– 844,364
TIEC Holdings Pte. Ltd.
– 596,456 596,456
– 2,807,566 2,807,566
ECG Property
Services Pte. Ltd.
–
–
–
– 12,475,753 12,475,753
1,115,562 596,456 1,712,018 3,359,926 15,283,319 18,643,245
