Cordlife Group Limited
Annual Report 2016
83
Notes to
The Financial Statements
for the financial year ended 30 June 2016
11. Investment in associate (cont’d)
Impairment testing of investment in associate (cont’d)
The discount rate applied to the cash flow projections and the forecasted growth rates used to extrapolate cash
flow projections beyond the five-year period are as follows:
2015
Growth rate
2.0%
Pre-tax discount
11.4%
In the financial year ended 30 June 2015, an impairment loss of $2,646,000 was recognised for the Group’s
investment in its associate, Stemlife Berhad.
Summarised financial information
The summarised financial information in respect of Stemlife Berhad, based on its FRS financial statements
and a reconciliation with the carrying amount of the investment in the consolidated financial statements are as
follows:
Stemlife
Berhad
2015
$’000
Summarised statement of financial position
Current assets
27,498
Non-current assets
5,976
Current liabilities
(24,946)
Non-current liabilities
–
Net assets
8,528
Proportion of the Group’s ownership
31.81%
Group’s share of net assets
2,713
Goodwill on acquisition, net of impairment loss
8,483
Intangible assets on acquisition, net of amortisation
2,559
Unrealised share of other income from associate
(212)
Carrying amount of the investment
13,543
Summarised statement of comprehensive income
Revenue
2,192
Loss for the year
(296)
Other comprehensive loss for the year
(310)
Total comprehensive loss for the year
(606)
