115 / 206
Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
103
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(a) Subsidiaries and basis of consolidation (cont’d.)
(ii) Basis of consolidation (cont’d.)
Any excess of the cost of business combination over the Group’s share in the net fair value of the acquired subsidiary’s identifiable assets,
liabilities and contingent liabilities is recorded as goodwill on the statement of financial position. The accounting policy for goodwill is set out
in Note 2.4(c)(i). Any excess of the Group’s share in the net fair value of the acquired subsidiary’s identifiable assets, liabilities and contingent
liabilities over the cost of business combination is recognised as income in profit or loss on the date of acquisition. When the Group acquires a
business, embedded derivatives separated from the host contract by the acquiree are reassessed on acquisition unless the business combination
results in a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required under the contract.
(iii) Transactions with non-controlling interest
Non-controlling interest represents the portion of profit or loss and net assets in subsidiaries not held by the Group and are presented separately
in profit or loss of the Group and within equity in the consolidated statements of financial position, separately from the parent shareholder’s
equity. Transactions with non-controlling interest are accounted for using the entity concept method, whereby, transactions with non-controlling
interests are accounted for as transactions with owners. On acquisition of non-controlling interest, the difference between the consideration and
book value of the share of the net assets acquired is recognised directly in equity. Gain or loss on disposal to non-controlling interest is recognised
directly in equity.
(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. Leasehold lands classified as operating leases are for a period
of 99 years as disclosed in Note 32(a). Depreciation of other property, plant and equipment is computed on a straight-line basis over the estimated
useful lives of the assets as follows:
Buildings and office lots
Fifty years
Renovation
Five years
Office equipment, furniture and fittings
Three to five years
Computers and office automation
Three to ten years
Motor vehicles
Five years