82
Cordlife Group Limited
Annual Report 2016
Notes to
The Financial Statements
for the financial year ended 30 June 2016
11. Investment in associate
2016
$’000
Group
2015
$’000
Company
2016
2015
$’000
$’000
Shares, at cost
316
18,147
–
18,220
Share of post-acquisition results of associate
78
(238)
–
–
Foreign currency translation reserve
–
(311)
–
–
Dividends received
–
(917)
–
–
Unrealised share of other income from
associate
–
(212)
–
–
Amortisation of intangible assets identified
upon acquisition of associate
–
(280)
–
–
Accumulated impairment loss
(394)
(2,646)
–
(4,677)
At 30 June
–
13,543
–
13,543
Fair value of investment in associate for which
there is published price quotation
–
9,838
–
9,838
Country of
Proportion of
Name of company
incorporation
Principal activities
ownership interest
2016
2015
%
%
Stemlife Berhad
1
Malaysia
Cord blood and cord lining banking services
–*
31.81
Thai Stemlife Co., Ltd
2
Thailand
Cord blood banking services
35.95
–
1 Audited by Ernst & Young, Kuala Lumpur
2 Audited by ABA Alliance Co Ltd
* The Group holds 89.88% of ownership interest in Stemlife Berhad as at 30 June 2016 and accounts for it as a subsidiary
(Note 34).
Impairment testing of investment in associate
The recoverable amount of the investment in associate as at 30 June 2015 is determined based on value in use
calculations using cash flow projections from financial budgets approved by management covering a five-year
period. Cash flows beyond the fifth year are extrapolated using estimated growth rates stated in the table below.
Key assumptions used in the calculation of value in use are growth rates and discount rates.
Growth rates – the terminal growth rate used do not exceed the long-term average growth rates of the industry
and country in which the associate operates in and is consistent with forecasts included in industry reports.
Discount rate – the discount rates applied to the cash flow projections are based on Weighted Average Cost
of Capital (“WACC”) where the cost of a company’s debt and equity capital are weighted to reflect its capital
structure.
