NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C3 Intangible assets (continued) Recognition and measurement (i) Goodwill Goodwill represents the excess of: • the fair value of the consideration transferred; plus • the recognised amount of any non-controlling interests in the acquiree; plus • if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree, over the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. (ii) Other intangible assets Class of intangible assets Background Valuation method Useful lives Dealer network and customer relationships Includes customer relationships and networks acquired Initial recognition: Separately acquired intangible assets are recognised at cost. Intangible assets arising from business combinations are recognised at fair value at the date of acquisition. Subsequent measurement: Intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses following initial recognition. Amortisation is calculated on a straight-line basis over the estimated useful lives. 1 to 25 years Commercial and intellectual property rights Relates to intellectual property 5 to 15 years Brands Includes brands of road construction equipment 20 to 70 years Licenses Relates to licenses to – conduct commercial aviation activities – purchase and lease Boeing parts – develop MRO capabilities for specific aircraft types 10 to 38 years Technology agreement Relates to the intellectual property required to operate the EcoPower Engine Wash business 13 years 172 ST ENGINEERING | ANNUAL REPORT 2024
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