for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Annual Report 2016
-
114
-
11.
Intangibleassets (cont’d)
Impairment loss recognised
Given thecurrentuncertaintiesandweaksentimentcontinuing toweighon theoilandgas industry, thecarrying
amount of theCGU exceeds its recoverable amount.As a result, a full impairment losswas recognised in the
current year towrite-down the carrying amount of goodwill. The impairment loss of $7,551,000 (2015: Nil)
has been recognised in profit or loss under the line item “other expense”.
Vessel design
In 2014, theGroup had acquired a vessel design. Subsequently, in the same year, theGroup commenced the
construction of a liftboat. The liftboat was intended for sale to customers in the oil and gas industry. As at
31December 2016, the construction of the liftboat was in progress and is targeted to complete by 2017. The
vessel design impairment assessment under FRS 36
Impairment of Assets
is dependent on the net realisable
value of the liftboat (Note 11).
Amortisation charge of $251,000 (2015: $244,000) has been included in theGroup’swork-in-progress.
12.
Investment insubsidiaries
Company
2016
2015
$’000
$’000
Shares, at cost
30,000
26,000
Impairment loss
(7,200)
–
22,800
26,000
Impairment testing of investment in subsidiary
During the financial year,management hasperformed impairment assessment onSeaDeepShipyardPte. Ltd.
which has experienced a significant decline in profits in view of the current uncertainties on the oil and gas
industry. Based on assessment of the subsidiary’s historical and current performances, the estimated values
and probability of future cash flows,management hasmade an impairment loss of S$7,200,000 (2015:Nil).
