82
ASIAMEDIAGROUPBERHAD
(813137-V)
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
i)
IntangibleAssets
(Cont’d)
i)
ResearchandDevelopment Costs
(Cont’d)
The amount initially recognised for internally-generated intangible assets is the sum
of the expenditure incurred from the date when the intangible asset first meets the
recognition criteria listed above. Where no internally-generated intangible asset can
be recognised, development expenditure is recognised in profit or loss in the period
inwhich it is incurred.
Subsequent to initial recognition, internally-generated intangibleassetsare reportedat
cost lessaccumulatedamortisationandaccumulated impairment losses. Capitalised
development costs recognised as intangible assets are amortised from the point at
which theasset is ready foruseonastraight-linebasisover itsuseful life,notexceeding
5 years.
ii) Goodwill
Goodwill is initiallymeasuredat cost.Following initial recognition,goodwill ismeasured
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 cash-generating units that are expected to
benefit from the synergies of the combination.
Thecash-generatingunit towhichgoodwill hasbeenallocated is tested for impairment
annually, ormore frequentlywhen there isan indication that the cash-generatingunit
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. If the recoverable amount of the cash-generating unit is less than its carrying
amount, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other assets of the unit pro-rata on the
basisof thecarryingamount of eachasset in theunit.Any impairment loss forgoodwill
is recognised directly in profit or loss. An impairment loss recognised for goodwill is
not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill
is included in the determination of theprofit or loss on disposal.
iii) Other IntangibleAssets
Other intangibleassetswhich represent licences, copyrightsandother incidental costs
incurred, arestatedat cost lessaccumulatedamortisationand impairment losses, are
amortised over a period of ten (10) years.
