2. Significant accounting policies (CONT’D.)
2.5 Summary of significant accounting policies (cont’d.)
(o) Employee benefits (cont’d.)
(iii) Defined benefit plans (cont’d.)
Service costs which include current service costs, past service costs and gains or losses on non-
routine settlements are recognised as expense in profit or loss. Past service costs are recognised
when plan amendment or curtailment occurs.
Net interest on the defined benefit liability is the change during the period in the defined benefit
liability that arises from the passage of time which is determined by applying the discount rate
based on high quality corporate bonds to the defined benefit liability. Net interest on the defined
benefit liability is recognised as expense or income in profit or loss. Remeasurements comprising
actuarial gains and losses are recognised immediately in other comprehensive income in the
period in which they arise. Remeasurements are not reclassified to profit or loss in subsequent
periods.
(p) Impairment of non-financial assets
The Group and the Company assess at each reporting date whether there is an indication that an
asset may be impaired. If any such indication exists, or when an annual impairment assessment for an
asset is required, the Group and the Company make an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s fair value less costs of disposal and its value
in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows (cash-generating units (CGU)).
In assessing value in use, the estimated future cash flows expected to be generated by the asset are
discounted to their present value using a pre-tax discount rate that reflects currentmarket assessments
of the time value of money and the risks specific to the asset. Where the carrying amount of an asset
exceeds its recoverable amount, the asset is written down to its recoverable amount. Impairment
losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the carrying
amount of any goodwill allocated to those units or groups of units and then, to reduce the carrying
amount of the other assets in the unit or groups of units on a pro-rata basis.
Impairment losses are recognised in profit or loss.
An assessment is made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. A previously recognised
impairment loss is reversed only if there has been a change in the estimates used to determine the
asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the
carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised previously. Such reversal is recognised in profit or loss. Impairment loss on goodwill is not
reversed in a subsequent period.
an n ual repo rt 2015
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