. 9 0
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
BAKER
TECHNOLOGY
L IMI TED
THE BE ST
I N US
2.
SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES (CONT’D)
2.7
Intangibleasset
Vessel design
Vesseldesign is treatedas intangibleassetand initiallycapitalisedatcost.Vesseldesign issubsequentlycarried
at cost less accumulated amortisation and accumulated impairment losses. These costs are amortised to
profit or loss using the straight-linemethodover theuseful lifeof 10 years.
2.8
Impairmentof non-financial assets
TheGroup assesses at each reporting datewhether there is an indication that an assetmay be impaired. If
any indication exists, or when an annual impairment testing for an asset is required, the Groupmakes an
estimateof the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of
disposal and its value in use and is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those fromother assetsor groupsof assets.Where thecarrying
amountofanassetorcash-generatingunitexceeds its recoverableamount, theasset isconsidered impaired
and iswrittendown to its recoverable amount.
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 theamountof anyprevious revaluation.
A previously recognised impairment loss is reversed only if there has been a change in the estimates used
to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the
case, thecarrying amount of the asset is increased to its recoverable amount. That increasecannot exceed
the carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognisedpreviously. Such reversal is recognised inprofit or loss unless the asset ismeasured at revalued
amount, inwhichcase the reversal is treated as a revaluation increase.
