ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 192 Focused 21. OTHER INTANGIBLE ASSETS (continued) Notes: (i) In June 2019, the Group has acquired SIP, an asset management company providing trust management services in Singapore. The trust management services are expected to continuously contribute to the net cash inflow of the Group. Impairment testing of other intangible assets — trust management rights The Group’s trust management rights have indefinite useful lives and are allocated to the Group’s SIP asset management business, which is treated as a cash-generating unit for impairment testing. Further details of the impairment test of SIP asset management business cash-generating unit are given in note 20. (ii) In January 2017, the Group has acquired Infinitysub Pte. Ltd. (“Infinitysub”), an asset management company providing trust management and property management service in Singapore. The trust management is expected to continuously contribute to the net cash inflow of the Group. Impairment testing of other intangible assets — trust management rights The Group’s trust management rights have indefinite useful lives and are allocated to the Group’s Infinitysub asset management business, which is treated as a cash-generating unit for impairment testing. Further details of the impairment test of Infinitysub asset management business cash-generating unit are given in note 20. (iii) In October 2018, the Group has acquired Viva Industrial Trust Management Pte. Ltd. (“VITM”), an asset management company providing trust management services in Singapore. The trust management services are expected to continuously contribute to the net cash inflow of the Group. Impairment testing of other intangible assets – trust management rights The Group’s trust management rights have indefinite useful lives and are allocated to the Group’s VITM asset management business, which is treated as a cash-generating unit for impairment testing. Further details of the impairment test of VITM asset management business cash-generating unit are given in note 20. 22. OTHER NON-CURRENT ASSETS As at 31 December As at 31 December 2019 2018 USD’000 USD’000 Prepayments for acquiring land use rights 23,233 23,883 Rental income receivables 3,402 5,376 Due from other related parties 3,555 1,975 Rental deposits 1,631 1,468 Investment in Compulsorily Convertible Debenture (note(i)) 6,036 – Others 1,954 1,659
 39,811 34,361 Note: (i) The Group subscribed to the Compulsorily Convertible Debentures (“CCD”) issued by the Group’s joint ventures. The CCD shall be fully convertible into equity shares at or any time before completion of 19 years and 364 days from the allotment date of the CCD. The conversion ratio of the CCD into equity shares would be 1:1 (i.e. one equity shares for each CCD allotted). The fair value measurement for the CCD has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used (see note 47). The balances due from other related parties are non-trade in nature and non-interest-bearing. As at 31 December 2019 and 2018, other non-current assets of the Group were considered to be of low credit risk and thus the Group has assessed that the ECL for deposits was immaterial under the 12-month expected credit loss method.