for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Baker Technology Limited
-
113
-
11.
Intangibleassets
Group
Goodwill
Vessel
design
Total
$’000
$’000
$’000
Cost:
At 1 January 2015
7,551
2,213
9,764
Addition during the year
–
227
227
At 31December 2015 and 1 January 2016
7,551
2,440
9,991
Addition during the year
–
105
105
At 31December 2016
7,551
2,545
10,096
Accumulated amortisation and impairment:
At 1 January 2015
–
–
–
Amortisation charge for the year
–
244
244
At 31December 2015 and 1 January 2016
–
244
244
Amortisation charge for the year
–
251
251
Impairment loss
7,551
–
7,551
At 31December 2016
7,551
495
8,046
Net carrying amount:
31December 2015
7,551
2,196
9,747
31December 2016
–
2,050
2,050
Impairment testing of goodwill
Thegoodwillwasderived from theacquisitionofSeaDeepShipyardPte.Ltd., thecashgeneratingunit (CGU).
Group
2016
2015
$’000
$’000
SeaDeepShipyardPte. Ltd.
–
7,551
The recoverable amount of theCGU has been determined based on value in use calculations using cash flow
projections from financial budgets approved bymanagement covering a five-year period.Management have
considered and determined the factors applied in these financial budgets.
Apre-taxdiscount rate of 11% (2015: 11%) per annum, which is commonly adoptedwithin the industry, was
applied to the cash flowprojections. Due to the extendedoil price downturn and the reduction inExploration
and Production spending of the oil and gas industry, management has forecasted a significant decline of
revenue in 2017, andmoderate recovery from 2018 to 2021 (2015: decline of revenue in 2016, and 4% per
annum from2017 to 2020).
