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notes to the financial statements (cont’d)
for the financial year ended 30 June 2014
JAYA TIASA HOLDINGS BERHAD
64
2. Summary of significant accounting policies (CONT’D)
2.9 Property, plant and equipment (cont’d)
The residual value, useful life and depreciation method 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.
2.10 Intangible assets
(a) Goodwill
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less
accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each
of the Group’s cash-generating units that are expected to benefit from the synergies of the combination.
The cash-generating unit to which goodwill has been allocated is tested for impairment annually and
whenever there is an indication that the cash-generating unit may be impaired, by comparing the carrying
amount of the cash-generating unit, including the allocated goodwill, with the recoverable amount of
the cash-generating unit. Where the recoverable amount of the cash-generating unit is less than the
carrying amount, an impairment loss is recognised in the profit or loss. Impairment losses recognised
for goodwill are not reversed in subsequent periods.
Where goodwill forms part of a cash-generating unit and part of the operation within that cash-generating
unit 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 cash-generating unit retained.
Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1 May
2006 are treated as assets and liabilities of the foreign operations and are recorded in the functional
currency of the foreign operations and translated in accordance with the accounting policy set out in
Note 2.8.
Goodwill and fair value adjustments which arose on acquisitions of foreign operations before 1 May 2006
are deemed to be assets and liabilities of the Company and are recorded in RM at the rates prevailing
at the date of acquisition.
(b) Other intangible assets
Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired
in a business combination is their fair value as at the date of acquisition. Following initial acquisition,
intangible assets are measured at cost less any accumulated amortisation and accumulated impairment
losses.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method are reviewed at least at each financial year-end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied in the
asset is accounted for by changing the amortisation period or method, as appropriate, and are treated
as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is
recognised in profit or loss.