HAW PAR CORPORATION LIMITED
62
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
For the financial year ended 31 December 2014
2.
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(d)
Property, plant and equipment
(continued)
(5)
Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment that has already been recognised
is added to the carrying amount of the asset only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the item can be measured reliably. All
other repair and maintenance expense is recognised in the profit or loss when incurred.
(6)
Disposal
On disposal of an item of property, plant and equipment, the difference between the net disposal
proceeds and its carrying amount is recognised in the profit or loss.
(e)
Intangible assets
(1)
Goodwill
Goodwill on acquisitions of subsidiaries and business on or after 1 January 2010 represents the excess
of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the
identifiable net assets acquired.
Goodwill on acquisition of subsidiaries and businesses prior to 1 January 2010 and on acquisition of
associated companies represents the excess of the cost of the acquisition over the fair value of the
Group’s share of their identifiable net assets at the date of acquisition.
Goodwill on subsidiaries is recognised separately as intangible assets and carried at cost less accumulated
impairment losses.
Goodwill on associated companies is included in the carrying amount of the investments.
Gains and losses on the disposal of subsidiaries and associated companies include the carrying
amount of goodwill relating to the entity sold, except for goodwill arising from acquisitions prior to
1 January 2001. Such goodwill was adjusted against retained profits in the year of acquisition and is
not recognised in profit or loss on disposal.
(2)
Trademarks
Trademarks are stated at cost less accumulated amortisation and accumulated impairment losses (Note
2(h)(2)). Amortisation is calculated using the straight line method to allocate the cost of trademarks over
a period not exceeding 20 years. These have been fully amortised as at the end of the reporting period.
(3)
Deferred expenditure
Deferred expenditure comprises technology fee paid in advance and clinical trial expenses, which are
recognised as assets as they generate future economic benefits. Technology fee expense paid in advance
for the use of a third party’s technology is amortised using the straight line method over a 5-year period
or the period of the contract with the third party, whichever is shorter. Clinical trial expenses incurred
for product registrations are amortised using the straight line method over a 5-year period.
The amortisation period and amortisation method of intangible assets other than goodwill are reviewed at least
at each financial year-end. The effects of any revision are recognised in profit or loss when the changes arise.
