ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C3 Intangible assets (continued) Impairment review The Group tests intangible assets for impairment to ensure they are not carried at above their recoverable amounts annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. These tests are performed by assessing the recoverable amount of each individual asset or, if this is not possible, then the recoverable amount of the cash generating unit (CGU) to which the asset belongs. CGUs are the lowest levels at which assets are grouped and generate separately identifiable cash flows. The recoverable amount is the higher of an asset or a CGU’s fair value less costs to sell and value-in-use. The value-in-use calculations are based on discounted cash flows expected to arise from the asset. Reversal of impairment Intangible assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. Key estimates and judgement: Recognition and measurement of intangible assets Key assumptions used in estimating the recoverable amount, useful life of an intangible asset (reassessed at each reporting date) requires management’s judgement. / ST ENG I NEER I NG 190