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CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.9 Intangible assets
Intangible assets acquired separately are measured initially at cost. The cost of intangible assets
acquired in a business combination is their fair value as at the date of acquisition. Following initial
acquisition, intangible assets are measured at cost less accumulated amortisation and any accumulated
impairment losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method are reviewed at least at each financial year-end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied
in the asset is accounted for by changing the amortisation period or method, as appropriate, and are
treated as changes in accounting estimates.
Intangible assets with indefinite useful lives or not yet available for use are tested for impairment
annually, or more frequently if the events and circumstances indicate that the carrying value may
be impaired either individually or at the cash-generating unit level. Such intangible assets are not
amortised. The useful life of an intangible asset with an indefinite useful life is reviewed annually to
determine whether the useful life assessment continues to be supportable. If not, the change in useful
life from indefinite to finite is made on a prospective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in profit
or loss when the asset is derecognised.
(i)
Customer contracts
The customer contracts were acquired in business combinations and are amortised on a straight
line basis over its finite useful life of 18 years.
(ii)
Club membership
Club membership, which has an indefinite useful life, is stated at cost less impairment loss, if any.
(iii) Computer software
Computer software was acquired separately and is amortised on a straight line basis over its
finite useful life of 3 years.
