NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CURRENCY - SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C3 Intangible assets (continued) Group Goodwill $’000 Dealer network and customer relationships $’000 Development expenditure $’000 Cost At 1 January 2021 842,502 181,689 631,010 Additions – – 84,898 Disposal of subsidiaries (10,431) (3,013) (114) Reclassification – – – Translation difference 15,584 (9,231) 2,793 At 31 December 2021 847,655 169,445 718,587 Accumulated amortisation and impairment losses At 1 January 2021 56,123 53,335 159,698 Amortisation for the year * – 6,989 38,607 Impairment losses + 5,000 – 1,769 Disposal of subsidiaries (10,431) (2,962) (104) Reclassification – – – Translation difference 287 (1,403) 2,078 At 31 December 2021 50,979 55,959 202,048 Net book value At 31 December 2021 796,676 113,486 516,539 * Amortisation charge of $179,270,000 (2021: $83,893,000) is recognised in the income statement as part of: - Other operating expenses of $42,790,000 (2021: $40,624,000); and - Cost of sales of $136,480,000 (2021: $43,269,000) + During the year, an impairment loss on goodwill of $5,000,000 (2021: $5,000,000) was recognised in other operating expenses in the income statement as the recoverable amount of a CGU (2021: one CGU) in the United States was determined to be lower than the carrying amount. The recoverable amount was determined based on the value-in-use method. No impairment loss was recognised in cost of sales during the year. In the prior year, the Group assessed that certain development expenditure, licenses and commercial and intellectual property rights associated with servicing of certain type of commercial airplane were impaired as these intangible assets were not expected to be generating future economic benefits and impairment losses of $1,769,000 were recognised in cost of sales in the income statement. 174 ST ENGINEERING ANNUAL REPORT 2022
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