for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Baker Technology Limited
-
91
-
2.
Summaryofsignificantaccountingpolicies (cont’d)
2.7
Intangible asset
Vessel design
Vessel design is treated as intangible asset and initially capitalised at cost. Vessel design is subsequently
carried at cost less accumulated amortisation and accumulated impairment losses. These costs are amortised
to profit or loss using the straight-linemethod over the useful life of 10 years.
2.8
Impairment of non-financial assets
TheGroup assesses at each reportingdatewhether there is an indication that an assetmaybe impaired. If any
indication exists, orwhen an annual impairment testing for an asset is required, theGroupmakes an estimate
of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of
disposal and its value inuse and is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those fromother assetsor groupsof assets.Where thecarryingamount
of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
Impairment lossesofcontinuingoperationsare recognised inprofitor loss, except forassets that arepreviously
revaluedwhere the revaluationwas taken toother comprehensive income. In this case, the impairment is also
recognised in other comprehensive income up to the amount of any previous revaluation.
Apreviously recognised impairment loss is reversed only if there has been a change in the estimates used
to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the
case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed
the carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised previously. Such reversal is recognised in profit or loss unless the asset ismeasured at revalued
amount, inwhich case the reversal is treated as a revaluation increase.
2.9
Financial instruments
(a)
Financial assets
Initial recognition andmeasurement
Financial assets are recognised when, and only when, the Group becomes a party to the contractual
provisions of the financial instrument. TheGroup determines the classification of its financial assets
at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
financial assets not at fair value through profit or loss, directly attributable transaction costs.
