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SEE HUP SENG LIMITED
Annual Report 2012
50
Notes to the Financial Statements
31 DECEMBER 2012
2 Significant Accounting Policies (Continued)
(i) Impairment of Non-Financial Assets (Continued)
(ii) Intangible asset, including club memberships and customer listings fee
Property, plant and equipment
Investments in subsidiaries and an associated company
Finite intangible assets (including club memberships and customer listings fee), property, plant and
equipment and investments in subsidiaries and an associated company are tested for impairment
whenever there is any objective evidence or indication that these assets may be impaired.
At the end of each reporting period, the group reviews the carrying amounts of its intangible assets,
property, plant and equipment and investments in subsidiaries associates and joint ventures to
determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any), on an individual asset.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group
estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-
generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an
impairment loss in profit or loss, unless the asset is carried at revalued amount, in which case,
such impairment loss is treated as a revaluation decrease. Please refer to Note 2(d)(ii) Property,
plant and equipment for the treatment of a revaluation decrease.
An assessment is made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-
generating unit) is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset (or cash-generating unit) in prior years.
A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant
asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated
as a revaluation increase. However, to the extent that an impairment loss on the same revalued
asset was previously recognised as an expense, a reversal of that impairment is also credited to
profit or loss.