80
SUNNINGDALE TECH LTD
ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
14.
Intangible assets (cont’d)
Impairment testing of goodwill (cont’d)
CGU 1 and CGU 6
The recoverable amounts of CGU 1 and CGU 6 have been determined based on fair value less costs of disposal (“FVLCOD”).
To calculate this value, an appropriate multiple was applied to the maintainable operating earnings of the CGUs.
Carrying amounts of goodwill allocated to the CGUs are as follows:
Group
2014
2013
$’000
$’000
CGU 1
6,808
6,808
CGU 6
5,870
5,870
Total
12,678
12,678
Key assumptions used in calculations of fair value less costs of disposal of the CGUs 1 and 6
The FVLCOD of the CGUs was determined by applying an appropriate market multiple to its earnings before interest, tax,
depreciation and amortisation (“EBITDA”), where management believes is sustainable in view of the current and anticipated
business conditions.
The FVLCOD of CGU 1 and CGU 6 was based on current EBITDAs and market multiple of 3.5 (2013: 3.5) and 4.0 (2013: 3.5)
respectively. The market multiple is calculated based on the median of comparable companies’ indications, after adjustment
for differences in risk and growth.
Management believes that any reasonably possible change of the key assumptions of which the CGUs recoverable amounts
are based would not cause the CGUs carrying amounts to exceed their recoverable amounts.
During the financial year, no impairment charge on goodwill was recognised (2013: $Nil).
15.
Other investments
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Quoted shares, at market value
4
1
–
–
Total available-for-sale financial assets
4
1
–
–
