For the financial year ended 31 December 2015
87
ANNUAL REPORT 2015
15. INTANGIBLE ASSETS
(CONTINUED)
(a) Goodwill on consolidation
(continued)
Key assumptions used for value-in-use calculations:
Discount rate
5.5% (2014: 7.0%)
Growth rate
0.0% (2014: 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.
(b) Trademarks and deferred expenditure
Deferred
Trademarks expenditure
$’000
$’000
The Group
Net book value
2015 and 2014
Beginning and end of financial year
–
–
At 31 December 2015 and 2014:
Cost
3,200
1,400
Less: Accumulated amortisation
(3,200)
(1,400)
Net book value
–
–
Trademarks
$’000
The Company
Net book value
2015 and 2014
Beginning and end of financial year
–
At 31 December 2015 and 2014:
Cost
2,000
Less: Accumulated amortisation
(2,000)
Net book value
–
The Company and its wholly-owned subsidiary, Haw Par Brothers International (HK) Ltd (“HPBIHK”) own the
“Tiger” (Cost: $2.0 million) and “Kwan Loong” (“Double Lion”) (Cost: HK$5.58 million) trademarks respectively.
The Company and HPBIHK (together “the Licensors”), licensed to Haw Par Healthcare Limited (“HPH”), another
wholly-owned subsidiary, the exclusive right to manufacture, distribute, market and sell “Tiger” and “Kwan
Loong” products worldwide until 31 December 2037 and can be renewable for a further period of 25 years on
terms to be mutually agreed between the Licensors and HPH.
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
