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SEC Filings

20-F
IKANG HEALTHCARE GROUP, INC. filed this Form 20-F on 08/10/2018
Entire Document
 

Table of Contents

 

IKANG HEALTHCARE GROUP, INC.

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEARS ENDED MARCH 31, 2016, 2017 AND 2018

(In thousands of US dollars, except share and per share data, or otherwise noted)

 

2.                                      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

 

Inventories

 

Inventories are medical consumable supplies and are stated at the lower of cost or net realizable value. Inventories are written down for obsolescence to net realizable value based upon estimates of future demand and expiration date of inventories. The Group did not record a write-down of inventories for the years ended March 31, 2016, 2017 and 2018, respectively.

 

Property and equipment, net

 

Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives:

 

Computer equipment and application software

 

5 years

Furniture and fixtures

 

5 years

Medical equipment

 

10 years

Motor vehicles

 

5 years

Leasehold improvement

 

Shorter of useful life of the asset or the lease term

 

Construction in progress represents unfinished leasehold improvement and installment of equipment for new clinics. Construction in progress will be transferred to leasehold improvement or property and equipment when it is finished. Depreciation is recorded starting at the time when assets are ready for the intended use.

 

Intangible assets, net

 

Intangible assets, other than goodwill, resulting from the acquisitions of entities accounted for using the purchase method of accounting are estimated by management based on the fair value of assets acquired. Identifiable intangible assets are carried at cost less accumulated amortization. Amortization of customer relationship is computed using the estimated attrition pattern of the acquired customers, and amortization of other finite- lived intangible assets is computed using the straight-line method over the following estimated average useful lives, which are as follows:

 

 

 

Weighted average (years)

 

Range (years)

 

 

 

 

 

Customer relationship

 

5.7

 

2.1~10.0

Non-compete agreements

 

3.0

 

2.0~3.0

Contract backlog

 

0.7

 

0.4~0.9

Operating licenses

 

3.0

 

0.3~5.0

Favorable lease contracts

 

7.1

 

1.4~9.8

 

The weighted average estimated average useful life of the intangible assets with determinable lives is 5.5 years.

 

F-22



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