Development costs comprise the building of a platform, "Floatmast" which can be used for the collection of sea data. It is intended that this will be marketed to European companies engaged in sea exploration.
Intangible assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs').
Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other comprehensive income.