108 / 152
Notes to the
financial statements
For the financial year ended 31 December 2018
106
B A K E R T E C H N O L O G Y
L I M I T E D
10.
Property, plant and equipment (cont’d)
(a) The Group’s leasehold lands and buildings are located at 6 Pioneer Sector 1, Singapore
628418, 10 Jalan Samulun, Singapore 629124 and 12A Jalan Samulun, Singapore 629131.
(b) Depreciation charge of $11,363,000 (2017: $2,806,000) and $398,000 (2017: $984,000)
have been included in the Group’s consolidated statement of comprehensive income and
contract assets, respectively.
(c) In end 2017, upon the completion of the vessel, the cost was transferred from work-in-progress.
Impairment testing on vessels
As at 31 December 2018, the Group carried out a review of the recoverable amount of its vessels
due to the continued weakness in the oil and gas industry. The recoverable amount of the vessels
was based on its value in use and the pre-tax discount rate was 9.5%. As the recoverable amount
was computed to be higher than the carrying value, no impairment loss was recorded.
Company
Office
equipment
$’000
Cost :
At 1 January 2017
55
Additions
7
At 31 December 2017, 1 January 2018 and 31 December 2018
62
Accumulated depreciation:
At 1 January 2017
53
Depreciation charge for the year
3
At 31 December 2017 and 1 January 2018
56
Depreciation charge for the year
3
At 31 December 2018
59
Net carrying amount:
At 1 January 2017
2
At 31 December 2017
6
At 31 December 2018
3