For the financial year ended 31 December 2015
63
ANNUAL REPORT 2015
2. SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(e) Intangible assets
(continued)
(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.
(f) Investment properties
Investment properties of the Group, principally comprising commercial and industrial buildings, are held for long-
term rental yields and/or capital appreciation and are not substantially occupied by the Group.
Investment properties are classified as non-current assets, initially recognised at cost and subsequently carried at
fair value, determined annually by independent professional valuers on the highest-and-best-use basis. Changes
in fair values are recognised in profit or loss.
Investment properties are subject to renovations or improvements at regular intervals. The cost of major
renovations and improvements is capitalised as additions and the carrying amounts of the replaced components
are written off to profit or loss. The cost of maintenance, repairs and minor improvements is charged to profit or
loss when incurred.
On disposal of an investment property, the difference between the net disposal proceeds and the carrying amount
is recognised in profit or loss.
(g) Investments in subsidiaries and associated companies
Investments in subsidiaries and associated companies are stated at cost less accumulated impairment losses (Note
2(h)(2)) in the Company’s statement of financial position. On disposal of investments in subsidiaries and associated
companies, the difference between net disposal proceeds and the carrying amount of the net investments is
recognised in profit or loss.
Dividend income from subsidiaries and associated companies is recognised when the right to receive payment
is established.
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
