Bursa Malaysia • Annual Report 2013
119
Financial Reports
2. Significant accounting policies (cont’d.)
2.5 Significant accounting judgements and estimates (cont’d.)
Key sources of estimation uncertainty (cont’d.)
(b) Impairment of goodwill
The Group and the Company determine whether goodwill is impaired at least on an annual basis. This requires an estimation of the value-in-use of
the CGUs to which goodwill is allocated. Estimating a value-in-use amount requires management to make an estimate of the expected future cash
flows from the CGU and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying amount of
goodwill as at the financial year end is disclosed in Note 14.
(c) Impairment of investment securities
The Group and the Company review its investment securities and assess at each financial year end whether there is any objective evidence that
the investment is impaired. If there are indicators or objective evidence, the investment securities are subject to impairment review.
The impairment review comprises the following judgement made by management:
(i) Determination whether its investment security is impaired following certain indicators such as, amongst others, prolonged decline in fair
value, significant financial difficulties of the issuers or obligors, the disappearance of an active trading market and deterioration of the credit
quality of the issuers or obligors.
(ii) Determination of “significant” or “prolonged” requires judgement and management evaluation on various factors, such as historical fair value
movement and the significant reduction in fair value.
The carrying amount of investment securities as at the financial year end are disclosed in Note 16.
(d) Depreciation/amortisation of system hardware and software
The cost of system hardware and software is depreciated and amortised on a straight-line basis over the useful lives of these assets. Management
estimates the useful lives of these assets to be between three to ten years. Technological advancements could impact the useful lives and the
residual values of these assets, therefore future depreciation and amortisation charges could be revised. The total carrying amounts of computer
hardware and software as at the financial year end are disclosed in Notes 12 and 13 respectively.
(e) Deferred tax assets
Deferred tax assets are recognised for all unutilised tax losses and unused capital allowances to the extent that it is probable that taxable profit
will be available against which the losses and capital allowances can be utilised. Significant management judgement is required to determine
the amounts of deferred tax assets that can be recognised, based on the likely timing and level of future taxable profits together with future tax
planning strategies. As at the financial year end, the total carrying value of unrecognised tax losses of the Group are as follows:
Group
2013
2012
RM’000
RM’000
Unrecognised tax losses
17,485
17,131
Notes to the Financial Statements
31 December 2013
