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Impairment
6 Months Ended
Dec. 31, 2014
Asset Impairment Charges [Abstract]  
Impairment

18. Impairment

 

We determine impairment of long-lived assets, including property, plant and equipment and amortizable intangible assets, by measuring the estimated undiscounted future cash flows generated by these assets, comparing the result to the assets’ carrying values and, if necessary, adjusting the assets to the lower of its carrying value or fair value and charging current operations for the measured impairment. The determination of the undiscounted future cash flows and fair value of these assets are subject to significant judgment.

 

The assets are subject to impairment consideration if events or circumstances indicate that their carrying amounts might not be recoverable. As of December 31, 2014, as the Company’s market capitalization was lower than the carrying value of its assets and the Company experienced continuing losses, management performed an impairment test and no impairment charges were recognized for the relevant year. As of December 31, 2014, the Company expects these assets to be fully recoverable based on the result of the impairment test.