IMPAIRMENT CHARGES

12 Months Ended

Dec. 31, 2019

Disclosure of impairment charges and inventory provisioning [Abstract]

IMPAIRMENT CHARGES

7. IMPAIRMENT CHARGES

In accordance with IAS 36, Impairment of Assets, the Group carries out an annual impairment review of the asset valuations. In determining whether a potential asset impairment exists, a range of internal and external factors are considered. A number of factors affected this calculation including:

• The Company’s market capitalisation at the end of the year that was lower when compared to the end of 2018.

• The inclusion of the latest cash flow projections and net asset values for each cash generating unit; and

• Increased volatility in the Company’s share price and higher market interest rates which resulted in a higher discount factor being applied to the Company’s expected future cash flows.

The impact of the above items on the statement of operations for the year ended December 31, 2019, December 31, 2018 and December 31, 2017 was as follows:

	December		December			December
		31, 2019		31, 2018			31, 2017
	US$’000		US$’000			US$’000
Selling, general & administration expenses
Impairment of PP&E (Note 13)		6,349		6,112			10,437
Impairment of goodwill and other intangible assets (Note 14)		16,570		19,212			29,667
Impairment of prepayments (Note 18)		1,376		1,608			1,651
Total impairment loss		24,295		26,932			41,755
							(
Income tax impact of impairment loss		148		(1,752	)		(517	)
Total impairment loss after tax		24,443		25,180			41,238