Baker Technology LimitedAnnual Report 2014
87
2.
Summary of significant accountingpolicies (cont’d)
2.7
Property, plant and equipment (cont’d)
The carrying valueof property, plant andequipment are reviewed for impairment whenevents or changes
in circumstances indicate that the carrying valuemay not be recoverable.
The residual value,useful lifeanddepreciationmethodare reviewedateachfinancial year-endandadjusted
prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economics
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is
included in theprofit or loss in the year the asset is derecognised.
2.8
Intangible asset
Vessel design
Vessel design is treated as intangible asset and initially capitalised at cost which includes the purchase price.
Vesseldesign issubsequentlycarriedatcost lessaccumulatedamortisationandaccumulated impairment losses.
Thesecostsareamortised toprofit or lossusing the straight-linemethodover theestimatednumber of units to
besold in thenext5 -8years.
2.9
Impairment of non-financial assets
TheGroup assesses at each reportingdatewhether there is an indication that an asset may be impaired.
If any indicationexists, or when an annual impairment testing for an asset is required, theGroupmakes an
estimateof the asset’s recoverable amount.
Anasset’s recoverableamount is thehigherofanasset’sorcash-generatingunit’s fairvalue lesscostsofdisposal
and itsvalue inuseand isdetermined foran individualasset,unless theassetdoesnotgeneratecash inflows that
are largely independent of those fromother assetsor groupsof assets.Where the carryingamount of anasset
or cash-generatingunitexceeds its recoverableamount, theasset isconsidered impairedand iswrittendown to
its recoverableamount.
Impairment losses of continuing operations are recognised in profit or loss, except for assets that are
previously revalued where the revaluation was taken to other comprehensive income. In this case, the
impairment isalso recognised inothercomprehensive incomeup to theamountofanyprevious revaluation.
A previously recognised impairment loss is reversed only if there has been a change in the estimates used to
determine theasset’s recoverableamount since the last impairment losswas 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 inprofitor lossunless theasset ismeasuredat revaluedamount, inwhich
case the reversal is treatedasa revaluation increase.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
