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FINANCIAL REPORTS
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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.)
(c) Intangible assets (cont’d.)
(ii) Computer software (cont’d.)
Projects-in-progress are not amortised as these computer software are not yet available for use.
Gains or losses arising from derecognition of computer software are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and is recognised in profit or loss when the asset is derecognised.
(d) Impairment of non-financial assets
The Group and the Company assess at each financial year end whether there is an indication that an asset may be impaired. If any such
indication exists, or when an annual impairment assessment for an asset is required, the Group and the Company make an estimate of the
asset’s recoverable amount.
For goodwill, computer software and property, plant and equipment that are not yet available for use, the recoverable amount is estimated
at each financial year end or more frequently when indicators of impairment are identified.
An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value-in-use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (i.e. CGUs). In assessing value-in-
use, the estimated future cash flows expected to be generated by the asset are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where the carrying amount of
an asset exceeds its recoverable amount, the asset is written down to its recoverable amount. Impairment losses recognised in respect of a
CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then,
to reduce the carrying amount of the other assets in the unit or groups of units on a pro-rata basis.
Impairment losses are recognised in profit or loss except for assets that are previously revalued where the revaluation was taken to other
comprehensive income. In this case, the impairment is also recognised in other comprehensive income up to the amount of any previous
revaluation.
An assessment is made at each financial year end as to whether there is any indication that previously recognised impairment losses may
no longer exist or may have decreased. A previously recognised impairment loss for an asset, other than goodwill, is reversed only if there
has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised,
in which case, the carrying amount of the asset is increased to its revised recoverable amount. The increase cannot exceed the carrying
amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised previously. Such
reversal is recognised in profit or loss unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation
increase. Impairment loss on goodwill is not reversed in a subsequent period.