ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
19.
Investment properties
Group
2015
2014
$'000
$'000
Balance at beginning of financial year
869,085 847,947
Additions during the year
5,491
17,751
Acquisition of subsidiary (Note 21)
36,124
–
Disposals/write-offs
(89)
(43)
(Amortisation)/capitalisation of marketing fee
(254)
632
Straightlining of rent free period
(385)
294
Transfer (to)/from investment properties under construction
(15,161)
55,448
Fair value gain
34,778
24,243
Translation differences
49,658
(77,187)
Balance at end of financial year
979,247 869,085
It is the intention of the Trustee-Manager to hold the investment properties for the long term.
Investment properties are stated at fair value, which has been determined based on valuations performed by Cushman &
Wakefield India Pte. Ltd. as at 31 March 2015. The details of the valuation techniques and inputs used are disclosed in Note 28.
20.
Goodwill
Group
2015
2014
$'000
$'000
Balance at beginning of financial year
15,997
17,604
Translation differences
919
(1,607)
Balance at end of financial year
16,916
15,997
Impairment test for goodwill
Goodwill has been allocated to cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates
cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The carrying values
of goodwill remain unchanged except for translation differences. The goodwill arose from the acquisition of Ascendas IT
Park (Chennai) Limited and Cyber Pearl Information Technology Park Private Limited amounting to $14,916,000 (2014:
$14,106,000) and $2,000,000 (2014: $1,891,000) respectively.
Goodwill balances result from the requirement on acquisition to recognise a deferred tax liability, calculated as the difference
between the tax effect of the fair value of the acquired assets and liabilities and their tax bases. For the purpose of testing
this goodwill for impairment, the related deferred tax liabilities recognised on acquisition that remain at balance sheet date
are treated as part of the relevant CGU.
