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Baker Technology LimitedAnnual Report 2014
12.
Intangible assets (cont’d)
Impairment testingof goodwill (cont’d)
Apre-taxdiscountrateof10% (2013:10%)perannum,which iscommonlyadoptedwithinthe industry,wasapplied
to thecashflowprojections. Inaddition,managementhasalsoadopteda forecastedgrowth rateof3% (2013:3%)
per annum for 5 years cash flowprojections. Thebulkof theGroup’s profit relates to theoperations of theSea
DeepGroup.Given this information, the recoverableamount isnot sensitive tootherassumptions.
No impairment losswas required for thecarryingamountofgoodwill assessedasat 31December 2014and
2013 as the recoverable amount of theCGUwas inexcess of the carrying value.
Vessel Design
InDecember 2014, theGroupacquired the vessel design. This acquired intangibleasset is identifiableand
controlledby theGroup. TheGroupobtains futureeconomicbenefits related to the asset, and the cost of
the intangible asset canbemeasured reliably. The total purchase cost is $2,213,089, of which $1,378,976 is
recorded asOther payables (Note 22). This is amortisedusing the straight-linemethodover theestimated
number of units tobe sold in thenext 5 - 8 years. Amortisationexpense is immaterial in the current year as
the vessel designwas acquired towards theendof December 2014.
13.
Investment in subsidiaries
Company
2014
2013
$
$
Shares, at cost
26,000,001
21,000,001
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
