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SINGAPORE SHIPPING CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(q) Impairment of non-financial assets (continued)
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs
are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs)
and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro-rata
basis.
An impairment loss recognised for goodwill is not reversed. In respect of other assets, impairment
losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount. An impairment loss is reversed only to the
extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation, if no impairment loss had been recognised.
Goodwill that forms part of the carrying amount of an investment in an associated company is not
recognised separately, and therefore is not tested for impairment separately. Instead the entire amount
of the investment in an associated company is tested for impairment as a single asset when there is
objective evidence that the investment in an associated company may be impaired.
(r) Inventories
Inventories, which comprise consumable stores, are valued at cost of purchase (including cost incurred
in bringing the inventories to their present location and condition) on a first-in first-out basis less any
applicable allowance for obsolescence. When inventories are consumed, the carrying amount of
these consumable stores is recognised as an expense in the period in which the consumption occurs.
(s) Non-derivative financial liabilities
The Group initially recognises debt securities issued and subordinated liabilities on the date that they
are originated. Financial liabilities for contingent consideration payable in a business combination are
recognised at the acquisition date. All other financial liabilities (including liabilities 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.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled
or expired.
Financial liabilities for contingent consideration payable in a business combination are initially
measured at fair value. Subsequent changes in the fair value of the contingent consideration are
recognised in profit or loss.
