Notestothefinancialstatements
For the financial year ended31December 2015
11.
Intangibleassets (cont’d)
Impairment testingof goodwill
Thegoodwillwasderived from theacquisitionof SeaDeepShipyardPte. Ltd., the cashgeneratingunit (CGU).
Group
2015
2014
$’000
$’000
SeaDeepShipyardPte. Ltd.
7,551
7,551
The recoverable amount of the CGU has been determined based on value in use calculations using cash flow projections from financial budgets approved by
management coveringa five-year period.Management have consideredanddetermined the factorsapplied in these financial budgets.
A pre-tax discount rate of 11% (2014: 10%) per annum, which is commonly adopted within the industry, was applied to the cash flow projections. Due to the
general slowdownof theoil andgas industry,management has forecastedadeclineof revenue in2016and4%growth rateper annum from2017 to2020 (2014:
3%per annum from2015 to2019).
Sensitivity to changes inassumptions
No sensitivity analysis is performed on the assumptions used in the value in use calculation. The bulk of theGroup’s profit relates to the operations of the
Sea Deep Group. As at 31 December 2015, the net tangible asset of the CGUwas $58,510,000 (2014: $56,689,000). Given this information, the recoverable
amount is not sensitive to other assumptions.
No impairment losswas required for the carryingamount of goodwill assessedasat 31December 2015and2014as the recoverableamount of theCGUwas in
excessof the carrying value.
VesselDesign
Amortisation chargeof $244,000 (2014: $Nil) hasbeen included in theGroup’swork-in-progress.
12.
Investment insubsidiaries
Company
2015
2014
$’000
$’000
Shares, at cost
26,000
26,000
The subsidiaries for the financial year ended31December are:
Subsidiaries
(Countryof incorporation)
Cost of
investment
Percentage
of equity
heldby
theGroup
Principal activities
(Placeof business)
2015
2014
2015
2014
$’000
$’000
%
%
(1)
SeaDeepShipyardPte. Ltd. (Singapore)
20,000
20,000
100
100 Manufacturer andprovider of
specialisedmarineoffshore
equipment and services
for theoil andgas industry
(Singapore)
(1)
BakerEngineeringPte. Ltd. (Singapore)
6,000
6,000
100
100 Designand fabricationof
offshoreandmarine
equipment
(Singapore)
(1)
BT Investment Pte. Ltd. (Singapore)
*
*
100
100 Investment holding
(Singapore)
26,000
26,000
* Less than$1,000
108
109
BAKERTECHNOLOGYlimited
ANNUAL REPORT 2015
