HAW PAR CORPORATION LIMITED
84
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
For the financial year ended 31 December 2014
14. INTANGIBLE ASSETS
The Group
The Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Goodwill on consolidation
11,116
11,116
–
–
Trademarks and deferred expenditure
–
–
–
–
11,116
11,116
–
–
(a)
Goodwill on consolidation
The Group
2014
2013
$’000
$’000
Cost
Balance at beginning and end of financial year
11,116
11,116
Impairment test for goodwill
The goodwill is allocated to the healthcare division of the Group, which is regarded as a cash-generating
unit (“CGU”).
During the financial year, the Group has determined that there is no impairment of its CGU containing the
goodwill. The recoverable amount (i.e. higher of value-in-use and fair value less costs to sell) of the CGU is
determined on the basis of value-in-use calculations. These calculations incorporate cash flow projections
by management covering a five-year period.
Key assumptions used for value-in-use calculations:
Discount rate
7.0% (2013: 6.7%)
Growth rate
0.0% (2013: 0.0%)
These assumptions have been used for the analysis of the CGU. The discount rate used is pre-tax and reflects
specific risks relating to the healthcare division. Based on the sensitivity analysis performed, any reasonable
change in the key assumptions would not result in any impairment adjustments.
