Singapore Airlines 2016 Annual Report Download - page 168
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Notes to the Financial Statements
31 March 2016
22 Intangible Assets (in $ million) (continued)
The Company
Computer
software and
others
Advance and
progress
payments Total
Cost
At 1 April 2014 426.2 5.2 431.4
Additions 7.6 14.7 22.3
Transfers 11.5 (11.5) –
Disposals (7.9) – (7.9)
At 31 March 2015 437.4 8.4 445.8
Additions 8.9 24.1 33.0
Transfers 27.4 (27.4) –
Disposals (5.4) – (5.4)
At 31 March 2016 468.3 5.1 473.4
Accumulated amortisation
At 1 April 2014 273.5 – 273.5
Amortisation 20.7 – 20.7
Disposals (7.8) – (7.8)
At 31 March 2015 286.4 – 286.4
Amortisation 25.4 – 25.4
Disposals (5.4) – (5.4)
At 31 March 2016 306.4 – 306.4
Net book value
At 31 March 2015 151.0 8.4 159.4
At 31 March 2016 161.9 5.1 167.0
Impairment testing of goodwill and brand
The goodwill and brand acquired through acquisition of Tiger Airways have indefinite useful lives. Tiger Airways has been identified as a single
CGU for impairment testing.
The recoverable amount of the CGU has been determined based on value-in-use calculations using cash flow projections from financial forecasts
approved by Management covering a five-year period. The pre-tax discount rate applied to cash flow projections is 6.8% (2015: 7.0%) and the
forecast long-term growth rate used to extrapolate the cash flow projections beyond the five-year period is 2.5% (2015: 2.5%).
The calculation of value-in-use for the CGU is most sensitive to the following assumptions:
Pre-tax discount rates – Discount rates represent the current market assessment of the risks specific to the CGU, regarding the time value of
money and individual risks of the underlying assets which have not been incorporated in the cash flow estimates.
Growth rate – The forecast long-term growth rate is based on published industry research and does not exceed the long-term average growth
rate for the industry.
A reasonable change to the assumptions used by Management to determine the impairment required, particularly the discount rate and long-
term growth rate, would not significantly aect the results.
Singapore Airlines166
FINANCIAL