5) CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
(Cont’d)
Key Sources of Estimation Uncertainty
(Cont’d)
(ii) Impairment on Receivables
The Group assesses at each reporting date whether there is any objective evidence that a
financial asset is impaired. To determine whether there is objective evidence of impairment,
the Group considers factors such as the probability of insolvency or significant financial
difficulties of the debtor and default or significant delay in payments. Where there is objective
evidence of impairment, the amount and timing of future cash flows are estimated based
on historical loss experience for assets with similar credit risk characteristics. The carrying
amount of the Group’s loans and receivables at the reporting date is disclosed in Note 11
to the Financial Statements.
(iii) Estimated Impairment of Goodwill and Intangible Assets
The Group determines whether goodwill and intangible assets have been impaired at least
on an annual basis. The recoverable amounts of the cash-generating units (“CGU”) are
determined based on the value-in-use method. Estimating a value-in-use amount requires
management to make an estimate of the expected future cash flows from the CGU and
also to choose a suitable discount rate in order to calculate the present value of those
cash flows.
(iv) Deferred Tax Assets
Deferred tax assets are recognised for all unused tax losses and unabsorbed capital
allowances to the extent that it is probable that taxable profit will be available against which
the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and
level of future taxable profit together with future tax planning strategies.
Asia Media Group Berhad Annual Report 2014
99
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
