NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
16 GOODWILL/OTHER INTANGIBLE ASSETS
(a)
Goodwill arising on consolidation
Group
2014
2013
$’000
$’000
At cost
At 1 January
20,603
26,408
Amount written off
–
(5,054)
Exchange adjustment
(356)
(751)
At 31 December
20,247
20,603
Accumulated impairment charge
At 1 January
–
5,054
Amount written off
–
(5,054)
At 31 December
–
–
Net Carrying Amount
20,247
20,603
The carrying amount of goodwill is allocated to Resources segment.
(i)
The recoverable amount of the resource subsidiary in Malaysia is determined based on value in use using
5-year cash flow projections based on financial forecasts. Management has considered and determined the
factors applied in these financial budgets, which included tin prices, exchange rates and fuel costs. The key
assumptions made reflect past experience. The pre-tax discount rate applied to the cash flow projections
at 8.2% (2013: 8.2%) was based on the estimated weighted average cost of capital. There is no impairment
in the carrying amount of goodwill arising from this review.
(ii)
Sensitivity to changes in assumptions
With regard to the assessment of value in use for the recoverable amount of the resource subsidiary in
Malaysia, management believes that no reasonably possible changes in any of the above key assumptions
would cause the carrying amount of goodwill to materially exceed its recoverable amount.
(b)
Other intangible assets
Group
2014
2013
$’000
$’000
(i)
Mining rights
3,058
2,903
Corporate club membership
257
189
3,315
3,092
(ii)
Deferred mine exploration and evaluation expenditure
3,068
1,830
Deferred mine development expenditure
1,267
947
4,335
2,777
7,650
5,869
100
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
