年報 - HKExnews

NOTES TO THE FINANCIAL STATEMENTS
31 March 2010
TEXWINCA HOLDINGS LIMITED ANNUAL REPORT 2010
3. SIGNIFICANT ACCOUNTING JUDGEMENTS
AND ESTIMATES (continued)
Estimation uncertainty
The key assumptions concerning the future and other
key sources of estimation uncertainty at the end of the
reporting period, that have a significant risk of causing
a material adjustment to the carrying amounts of assets
and liabilities within the next financial year, are discussed
below.
Impairment of trademarks
In accordance with HKAS 36 “Impairment of Assets”,
the Group determines whether trademarks are impaired
at least on an annual basis. This requires an estimation
of the value in use of the cash-generating units to which
the trademarks are related. Estimating the value in use
requires the Group to make an estimate of the expected
future cash flows from the cash-generating unit and also
to choose a suitable discount rate in order to calculate the
present value of those cash flows.
Estimation of useful lives of trademarks
The Group assessed the useful lives of previously
recognised trademarks. As a result of this assessment,
the trademarks were classified as intangible assets with
indefinite useful lives. This conclusion is supported by the
fact that the Group’s trademark legal rights are capable
of being renewed indefinitely at insignificant cost and
therefore are perpetual in duration, related to well known
and long established fashion brands, and based on future
financial performance of the Group, they are expected to
generate positive cash flows indefinitely. Under HKAS 38
“Intangible Assets” the Group re-evaluates the useful lives
of the trademarks each year to determine whether events
or circumstances continue to support the view of the
indefinite useful lives of the trademarks.
Estimation of fair value of investment properties
The Group considers information from a variety of sources,
including (i) by reference to current prices in an active
market for properties of a different nature, condition and
location (or subject to different leases or other contracts),
adjusted to reflect those differences; (ii) recent prices of
similar properties in less active markets, with adjustments
to reflect any changes in economic conditions since the
date of the transactions that occurred at those prices; and
(iii) independent valuations.
3.
36
38
(i)
(ii)
(iii)
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