Annual report 2014
75
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014 (continued)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.6 Investments (continued)
(c) Joint arrangements (continued)
(ii) Joint venture (continued)
The Group determines the type of joint arrangement in which it is involved, based on the
rights and obligations of the parties to the arrangement. In assessing the classification of
interests in joint arrangements, the Group considers:
(a) The structure of the joint arrangement;
(b) The legal form of joint arrangements structured through a separate vehicle;
(c) The contractual terms of the joint arrangement agreement; and
(d) Any other facts and circumstances.
When there are changes in the facts and circumstances change, the Group reassesses
whether the type of joint arrangement in which it is involved has changed.
4.7 Intangible assets
(a) Goodwill
Goodwill recognised in a business combination is an asset at the acquisition date and is initially
measured at cost being the excess of the sum of the consideration transferred, the amount of
any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held
equity interest (if any) in the entity over net of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed. If, after reassessment, the interest of the Group in
the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration
transferred, the amount of any non-controlling interest in the acquiree and the fair value of
the acquirer’s previously held equity interest in the acquiree (if any), the excess is recognised
immediately in profit or loss as a bargain purchase gain.
After initial recognition, goodwill is measured at cost less accumulated impairment losses, if
any. Goodwill is not amortised but instead tested for impairment annually or more frequently
if events or changes in circumstances indicate that the carrying amount could be impaired.
Objective events that would trigger a more frequent impairment review include adverse
industry or economic trends, significant restructuring actions, significantly lowered projections of
profitability, or a sustained decline in the acquiree’s market capitalisation. Gains and losses on
the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
(b) Other intangible assets
Other intangible assets are recognised only when the identifiability, control and future economic
benefit probability criteria are met.
The Group recognises at the acquisition date separately from goodwill, an intangible asset of
the acquiree, irrespective of whether the asset had been recognised by the acquiree before
the business combination. In-process research and development projects acquired in such
combinations are recognised as an asset even if subsequent expenditure is written off because
the criteria specified in the policy for research and development is not met.
