94
SUNNINGDALE TECH LTD
ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
24.
Other liabilities
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Current:
Trade accrual
10,665
5,803
108
319
Accrued other operating expenses
15,582
9,915
1,986
1,607
Accrued directors’ fees payable
570
545
570
545
Accrued staff and related costs
18,529
11,028
1,704
1,539
Accrual for VAT
6,128
4,708
–
–
Accrued interest payable
432
91
350
43
51,906
32,090
4,718
4,053
Provision for an onerous contract
318
–
–
–
52,224
32,090
4,718
4,053
Non-current:
Provision for an onerous contract
1,272
–
–
–
Group
$’000
Movement in provision for an onerous contract:
At 1 January 2014
–
Acquisition of a subsidiary
1,560
Currency realignment
30
At 31 December 2014
1,590
Current 2014
318
Non-current 2014
1,272
1,590
Provision for an onerous contract
Onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the
economics benefits expected to be received under it.
During the Purchase Price Allocation exercise of SSH Group, the management has identified an onerous contract. Accordingly,
the onerous contract was valued using the Discounted Cash Flow method and a provision amounting to $1,560,000 was
recognised for it.
