Cordlife Group Limited
Annual Report 2016
65
Notes to
The Financial Statements
for the financial year ended 30 June 2016
2.
Summary of significant accounting policies (cont’d)
2.8
Investment properties (cont’d)
Transfers are made to or from investment property only when there is a change in use. For a transfer from
investment property to owner-occupied property, the deemed cost for subsequent accounting is the fair value at
the date of change in use. For a transfer from owner-occupied property to investment property, the property is
accounted for in accordance with the accounting policy for property, plant and equipment set out in Note 2.7 up
to the date of change in use.
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 de-recognition 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 de-recognised.
(i)
Customer contracts
The customer contracts were acquired in business combinations and are amortised on a systematic
basis over its finite useful life of 12 years to 20 years, which reflects the pattern of benefits.
(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.
(iv)
Brands
Brands were acquired in business combinations and are amortised on a systematic basis over its finite
useful life of 15 years, which reflects the pattern of benefits.
