Bursa Malaysia • Annual Report 2013
106
Financial Reports
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(b) Property, plant and equipment and depreciation
All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and equipment is recognised as an
asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Group and the Company and the cost of
the item can be measured reliably.
Subsequent to recognition, costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the Company and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are recognised in profit or loss as incurred.
Subsequent to recognition, property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses.
Projects-in-progress are not depreciated as these assets are not yet available for use. Depreciation of other property, plant and equipment is
computed on a straight-line basis over the estimated useful lives of the assets as follows:
Building and office lots
Fifty years
Renovation
Five years
Office equipment and furniture and fittings
Three to five years
Computers and office automation
Three to ten years
Motor vehicles
Five years
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the
carrying value may not be recoverable.
The residual values, useful lives and depreciation methods are reviewed at each financial year end, and adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.
Any gain or loss on derecognition of the asset is included in the profit or loss in the year the asset is derecognised.
(c) Intangible assets
(i) Goodwill
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each of the Group and of the Company’s
cash-generating units (CGUs) that are expected to benefit from the synergies of the combination.
Where goodwill forms part of a CGU and part of the operation within that CGU is disposed of, the goodwill associated with the operation
disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill
disposed of in this circumstance is measured based on the relative fair values of the operations disposed of and the portion of the CGU
retained.
Notes to the Financial Statements
31 December 2013
