Creative 2015 Annual Report Download - page 40

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40
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
Available-for-sale nancial assets are analysed as follows:
Group Company
2015 2014 2015 2014
US$’000 US$’000 US$’000 US$’000
Listed equity securies 10,848 13,666 – –
Unlisted equity securies 7,391 7,942 – –
18,239 21,608 – –
The Group has recognised impairment losses of US$4,725,000 (2014: US$972,000) against securities whose fair values
were below cost during the nancial year.
17. INVESTMENTS IN SUBSIDIARIES
Company
2015
2014
US$’000 US$’000
Equity investments at cost
Beginning of nancial year 227,606 227,990
Addions 5,000 –
Liquidaons (3,952) –
Disposals – (384)
End of nancial year 228,654 227,606
Accumulated impairment
Beginning of nancial year (202,900) (199,600)
Addions (3,500) (3,300)
Reversal following liquidaon 3,199 –
End of nancial year (203,201) (202,900)
Net carrying value at end of nancial year 25,453 24,706
In the nancial year ended 30 June 2015, the Group’s wholly-owned subsidiary, Creative Labs Pte Ltd, has issued 5,000,000
ordinary shares for a total consideration of US$5,000,000 for cash to provide funds for operations expansion purpose. All
issued ordinary shares of Creative Labs Pte Ltd are subscribed and fully paid by the Company. In the nancial year ended
30 June 2014, the Company has disposed its entire 60% equity interest in a subsidiary, MLK Industry Limited, for a cash
consideration of US$163,000.
The impairment loss of US$3,500,000 in the nancial year ended 30 June 2015 reects the write-down of the carrying amount
of the Company’s investments in certain subsidiaries to the recoverable amount following a review of the subsidiaries’ net
assets value. The impairment loss of US$3,300,000 in the nancial year ended 30 June 2014 reects the write-down of the
carrying amount of the Company’s investment in a wholly-owned subsidiary following the cessation of its property rental
business.
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2015
16. FINANCIAL ASSETS, AVAILABLE-FOR-SALE (cont’d)