Straco Corporation Limited • Annual Report 2014
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NOTES TO THE FINANCIAL STATEMENTS
3
Significant accounting policies (cont’d)
3.4 Investment property (cont’d)
Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount
of the item) is recognised in profit or loss.
3.5 Intangible assets
Goodwill
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For the measurement of goodwill at initial recognition, see
note 3.1.
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses.
Brand, trademarks and others
Brand, trademarks and other intangible assets that arise from the acquisition of the Singapore Flyer are included in intangible asset and measured at
fair value upon initial recognition. Subsequent to initial recognition, the intangible assets are recognised at cost less accumulated amortisation and
accumulated impairment losses.
Amortisation
Amortisation of brand, trademarks and others are recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible
assets, from the date that they are available for use. The estimated useful lives for the current year are as follows:
Brand and trademarks
5 years
Others
1 year
Development costs
Costs incurred in connection with the development of stage shows, costumes and other stage settings are capitalised. Such development costs are
stated at cost less accumulated amortisation and accumulated impairment losses.
Development costs are amortised in profit or loss on a straight-line basis over the estimated useful life of 3 years, from the date on which they are
available for use.
3.6 Financial instruments
Non-derivative financial assets
The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets (including assets
designated at fair value through profit or loss) are recognised initially on the trade date, which is the date that the Group becomes a party to the
contractual provisions of the instrument.
