128 / 222
FINANCIAL REPORTS
120
Bursa Malaysia •
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2015
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(b) Property, plant and equipment and depreciation (cont’d.)
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
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’s and 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.
(ii) Computer software
Computer software is initially measured at cost. Following initial recognition, computer software is measured at cost less accumulated
amortisation and accumulated impairment losses.
The useful lives of computer software are assessed to be finite. Computer software are amortised over their estimated useful lives of
five to ten years and assessed for impairment whenever there is an indication that they may be impaired. The amortisation period and
method are reviewed at least at each financial year end. Changes in the expected useful lives or the expected pattern of consumption
of future economic benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate,
and are treated as changes in accounting estimates. The amortisation expense on computer software with finite lives is recognised in
profit or loss.