88
ASIAMEDIAGROUPBERHAD
(813137-V)
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
n) BorrowingCosts
(Cont’d)
Investment income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation.
All otherborrowingcostsare recognised inprofitor loss in theyear inwhich theyare incurred.
o) Cash andCashEquivalents
Cashandcashequivalentscomprisecashat bankand inhand, demanddepositsandshort
term, highly liquid investments that are readily convertible to known amount of cash and
which are subject to an insignificant risk of changes in value.
p) Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the
Group and the Company after deducting all of its liabilities. Ordinary shares are equity
instruments.
Ordinarysharesare recordedat theproceeds received,netofdirectlyattributable incremental
transaction costs. Ordinary shares are classified as equity. Dividends on ordinary shares
are recognised in equity in the period inwhich they are declared.
q) Contingencies
Acontingent liability or asset is a possible obligation or asset that arises from past events
andwhoseexistencewillbeconfirmedonlyby theoccurrenceornon-occurrenceofuncertain
futureevent(s) not whollywithin the control of theGroup.
Contingent liabilities and assets are not recognised in the statements of financial position
of theGroup.
r)
OperatingSegments
Anoperatingsegment isacomponent of theGroup that engages inbusinessactivities from
which itmayearn revenuesand incurexpenses, including revenuesandexpenses that relate
to transactions with any of the Group’s expenses, including revenues and expenses that
relate to transactions with any of theGroup’s other components. An operating segment’s
operating results are reviewed regularly by the chief operating decision maker, which in
this case is theChief ExecutiveOfficer of theGroup, tomakedecisionsabout resources to
be allocated to the segment and assess its performance, and for which discrete financial
information is available.
s) Warrant Reserve
Proceeds from the issuance of warrant, net of issue costs, are credited towarrant reserve
which is non-distributable. Warrant reserve is transferred to the share premium account
upon theexerciseofwarrant and thewarrant reserve in relation to theunexercisedwarrant
at the expiry of thewarrant will be transferred to retained earnings.
