FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
90
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
17 INTANGIBLE ASSETS (CONT’D)
2014
The Group
Goodwill on
consolidation
$’000
Deferred
development
costs
$’000
Patents
$’000
Club
membership
$’000
Intellectual
properties
$’000
Total
$’000
Cost:
At beginning of the financial year
16,532
9,873
447
415
5,950 33,217
Currency translation differences
(389)
(631)
(174)
(1)
(14)
(1,209)
Acquisition of subsidiaries
2,313
-
1,970
-
14
4,297
Addition
-
4,506
-
-
-
4,506
At end of the financial year
18,456
13,748 2,243
414
5,950 40,811
Accumulated amortisation:
At beginning of the financial year
-
740
233
-
4,163
5,136
Currency translation differences
-
(34)
(36)
-
(14)
(84)
Amortisation charge
-
510
435
-
1,439
2,384
At end of the financial year
-
1,216
632
-
5,588
7,436
Accumulated impairment:
At beginning of the financial year
6,708
1,653
-
-
-
8,361
Currency translation differences
(9)
(36)
-
-
-
(45)
Impairment loss (Note 9(vi))
179
-
-
-
-
179
At end of the financial year
6,878
1,617
-
-
-
8,495
Carrying value:
At 31 December 2014
11,578
10,915 1,611
414
362 24,880
(a) Goodwill on consolidation
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified according to countries of operation
and business segment.
The summary of the goodwill allocation is presented below:
2015 ($’000)
2014 ($’000)
IMS Mechatronics
Total
IMS Mechatronics
Total
America
-
2,290
2,290
-
2,383
2,383
The Netherlands
2,057
7,049
9,106
2,141
7,048
9,189
Singapore
6
-
6
6
-
6
2,063
9,339
11,402
2,147
9,431 11,578
The recoverable amount of a CGU is determined based on value-in-use calculations. Cash flow projections used
in these calculations were based on financial forecasts approved by management covering a five-year period and
extrapolates cash flows for the following five years based on the estimated growth rates below. The growth rates
do not exceed the long-term average growth rate for the components business in which the CGU operates.
