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CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
3.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
(CONTINUED)
3.2 Key sources of estimation uncertainty
(Continued)
Fair value measurement of investment properties
The Group carries its investment properties at fair value, with changes in fair values being recognised
in profit or loss. The Group engaged independent valuation specialists to determine the fair value of
the investment properties as at 30 June 2015.
The key assumptions used to determine the fair value of the investment properties are further explained
in Note 13.
Fair value measurement of derivative asset
The Group carries its derivative asset at fair value, with changes in fair values being recognised in
profit or loss. The Group uses the Black-Scholes option pricing model to determine the fair value of
the asset as at 30 June 2015.
The key assumptions used to determine the fair value of the derivative asset are further explained in
Note 16.
Impairment of non-financial assets
An impairment exists when the carrying value of an asset or cash-generating unit exceeds its
recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair
value less costs to sell calculation is based on available data from binding sales transactions in an arm’s
length transaction of similar assets or observable market prices less incremental costs for disposing the
asset. The value in use calculation is based on discounted cash flow model. The cash flows are derived
from the budget for the next five years and do not include restructuring activities that the Group is
not yet committed to or significant future investments that will enhance the asset’s performance of
the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate
used for the discounted cash flow model as well as the expected future cash inflows and the growth
rate used for the extrapolation purposes.
Income taxes
Significant judgement is involved in determining the Group-wide provision for income taxes. There
are certain transactions and computations for which the ultimate tax determination is uncertain
during the ordinary course of business. The Group recognises liabilities for expected tax issues based
on estimates of whether additional taxes will be due. Where the final tax outcome of these matters
is different from the amounts that were initially recognised, such differences will impact the income
tax and deferred tax provisions in the period in which such determination is made.
The carrying amount of the Group’s tax payable and deferred tax liabilities at 30 June 2015 was
$1,103,000 (2014: $1,558,000) and $91,000 (2014: $188,000) respectively.
