Other intangible assets 16 keppel corporation

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Other Intangible Assets
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16 Keppel Corporation Impairment of Assets The intangible assets include building costs, client contracts and customer relations, which were acknowledged originally at price and then maintained at value for less depreciation accumulated. The costs which are supposed to create possible financial benefit are recognized as intangible and computed for a duration of 3 to 20 years on a straight-line basis. Fixed Assets: Fixed assets are mentioned at costs and then carried at cost less depreciation incurred and, if any, less depreciation incurred. The originally identified expense includes the purchase price and any costs immediately due to the place, situation and operation of the asset in the way designed for the administration. Abdomen investment is only introduced to carry if potential financial benefits are likely to be transferred to the organization and if the costs can be reliably assessed. If the work-power of a benefit surpasses its anticipated recoverable sum. The fixed asset depreciation is calculated on a direct basis to decrease in value the fixed asset costs over its estimated lifetimes. Freehold plant and resources work in progress shall be excluded from depreciation. Keppel Corporation Assets: Advancesand receivables: Receivables Loans Investment Other receivables Fixed Assets: Buildings on freehold land 20 to 50 years Leasehold land & buildings Over period of lease (ranging from 15 to 60 years) Vessels & floating docks 10 to 20 years Plant, machinery & equipment 3 to 30 years Furniture, fittings & office equipment 2 to 10 years Cranes 5 to 30 years Small equipment and tools 2 to 20 years Intangible assets – Good will Other intangibles- Building Cost.
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16 Keppel Corporation Impairment of Assets Impairment of Assets A. Fixed Assets In Keppel corporation for the year ending 31/12/2018, there have been impairments for plant, property, equipment, building and goodwill. In these fixed assets mentioned above impairment tests are conducted and it is explored. When the carrying amount of the asset hits the amount recovered, the asset is declared affected and the revenue declaration contains the reduction of impairments. This is practised to lessen the carrying sum in the income statement to its recoverable worth. The recoverable sum is higher than the expense and estimation of an asset's reasonable worth. Assets that have separately recognizable cash flows are categorized at the smallest level for evaluating impairment. b. Discount Rate: The discount rate should be before the tax rate for measuring value in use, which reflects current market calculations based on time value of money and risk associated with the asset. The discount rate should not represent risks adjusted for future cash flows and should correspond to the rate of return on investments would need if investors were to choose a cash flow equivalent to their anticipated asset investments.
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