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NOTES TO THE FINANCIAL STATEMENTS
31 March 2007
Singapore Airlines 121 Annual Report 2006-07
21 Associated Companies (in $ million)
The Group The Company
31 March 31 March
2007 2006 2007 2006
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Share of net assets of associated companies
at acquisition date 316.4 298.0 – –
Goodwill on acquisition of associated companies 1,759.6 1,759.6 – –
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Unquoted investments at cost 2,076.0 2,057.6 1,592.1 1,603.0
Accumulated impairment loss (18.5) (18.5) (9.4) (20.3)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
2,057.5 2,039.1 1,582.7 1,582.7
Goodwill written-off to reserves (1,613.0) (1,613.0) – –
Accumulated amortisation of intangible assets (22.2) (14.8) – –
Currency realignment (53.6) (29.0) – –
Share of post-acquisition reserves
– general reserve 322.3 325.1 – –
– fair value reserve 19.5 115.6 – –
– capital reserve 44.9 30.5 – –
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
755.4 853.5 1,582.7 1,582.7
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Loans to associated companies 147.1 148.1 139.5 139.5
Write-down of loans (5.0) (5.3) – –
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
142.1 142.8 139.5 139.5
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
897.5 996.3 1,722.2 1,722.2
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Amounts owing by associated companies 1.9 3.7 – –
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
The customer-related intangible assets arose from the acquisition of associated companies and the Group has engaged
an independent third party to perform a fair valuation of these separately identifi ed intangible assets. The useful life of
these intangible assets was determined to be fi ve years and the assets will be amortised on a straight-line basis over the
useful life. The amortisation is included in the line of “share of profi ts of associated companies” in the consolidated profi t
and loss account.
During the fi nancial year:
1 The Company’s associated company, RCMS Properties Private Limited, recorded a revaluation gain of $72.3 million
(2005-06: revaluation loss of $8.5 million) from its annual revaluation exercise of its land and building. The
Company’s share of the revaluation gain of $14.4 million at 31 March 2007 (2006: revaluation loss of $1.6 million) is
included under the Group’s share of post-acquisition capital reserve.
2 Mid-East Airport Services Pte Ltd was liquidated on 19 June 2006.
3 Asia Leasing Limited was deregistered from the Bermuda companies register on 14 October 2006.
4 SIA Cargo injected an additional $23.6 million in Great Wall Airlines Company Limited (“GWAC”). There was no
change in the Group’s 25% equity stake in GWAC.