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SEE HUP SENG LIMITED
Annual Report 2012
73
Notes to the Financial Statements
31 DECEMBER 2012
13 Goodwill (Continued)
Management believes that the carrying amount of goodwill is not less than its recoverable amount which has
been determined based on value in use using cashflow forecasts. The rate used to discount the forecast cash
flows is 8% (2011: 10%).
The calculation of value in use for the CGUs are most sensitive to the following assumptions:
a) Growth rates – the forecasted growth rates are based on published industry research.
b) Pre-tax discount rate – the discount rate represents the current market assessment of the risk specific to
each CGU.
Management has considered the possibility of greater than budgeted increase/decrease in estimated growth
rates and the discount rate used. A 2% increase/decrease in the estimated growth rate and the discount rate
used would not result in a recoverable amount lower than the carrying amount of goodwill.
14 Intangible Assets
Group
2012 2011
S$’000 S$’000
At cost:
Balance at beginning of year 569 283
Balance at beginning of year (283) (283)
Amortisation during the year (5) –
Balance at year end (288) (283)
Balance at year end 281 –
Group
Capitalised
development
Customer
listing fee Total
S$’000 S$’000 S$’000
Balance at 31 December 2011 – 283 283
Acquisition through a Business Combination 286 – 286
Balance at 31 December 2012 286 283 569
Balance at 31 December 2011 – (283) (283)
Amortisation expense (5) – (5)
Balance at 31 December 2012 (5) (283) (288)
Net book value 281 – 281
The amortisation expense has been included in the line item ‘other operating expenses’ in the consolidated
statement of comprehensive income.
The following useful lives are used in the calculation of amortisation:
Capitalised development 10 years