Singapore Airlines 2009 Annual Report Download - page 160

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NOTES TO THE FINANCIAL STATEMENTS
31 March 2009
20 Intangible Assets (in $ million) (continued)
The Group (continued)
Brands, customer relationships and licences
Upon acquisition of SFI, intangible assets relating to brands, customer relationships and licences were capitalised.
Brands relate to the “New Covent Garden”, “Johnsons” and “Farmhouse Fare” brand names for SATS Group’s
food preparation, manufacturing and processing operations. The useful life of the fi rst two brands is estimated
to be indefi nite while “Farmhouse Fare” brand name has an estimated useful life of 17 years.
The customer relationships relate to the economic benefi ts that are expected to derive from trading with the
existing customers in the Singapore and United Kingdom (“UK”) operations. The relationships include catering and
supply contracts with customers as well as other non-contractual customer relationships which past transactions
provide evidences that SATS Group is able to benefi t from the future economic infl ows from such relationships.
Licenses refer to the abattoir and hog auction licence granted by the Agri-Food and Veterinary Authority of
Singapore and transferable fi shing licence in Australia.
In 2007-08, SIAEC acquired 100.0% equity interest in Aircraft Maintenance Service Australia Pty Ltd. Upon
acquisition, licenses to operate in Australia were capitalised.
Impairment testing of goodwill arising on consolidation and brands
No impairment testing was carried out as at 31 March 2009 as the acquisition was only completed in March
2009 and the fair values of the acquired assets and liabilities have been determined on a provisional basis
and might be adjusted accordingly on a retrospective basis when the valuations are fi nalised.