4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
f)
Property, Plant and Equipment
(Cont’d)
Depreciation of property, plant and equipment, other than capital work-in-progress which
is not depreciated, is calculated to write off the cost of the property, plant and equipment
on a straight-line basis over the expected useful lives of the property, plant and equipment
concerned. The annual depreciation rates used are as follows:
2014
2013
%
%
Transit TV system
33
10
Broadcast centre, network and SMS gateway
10
10
Furniture and fittings
20
20
Computer software
10
10
Motor vehicles
20
20
Office equipment
20
20
Plant and machinery
10
10
Renovation and signboard
10
10
During the financial year, the Group revised the depreciation rate for Transit TV System from
10% to 33%. The effect of this accounting change is to increase the depreciation charge
and correspondingly increase the loss before tax in the current year by RM7,295,349.
The carrying values of property, plant and equipment are reviewed for impairment when
events or change in circumstances indicate that the carrying value may not be recoverable.
The residual values, useful lives and depreciation methods 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. Gain or loss arising from the
disposal of an asset is determined as the difference between the estimated net disposal
proceed and the carrying amount of the asset, and is recognised in profit or loss.
g) Subsidiaries and Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Company
and its subsidiaries as at the reporting date. The financial statements of the subsidiaries
used in the preparation of the consolidated financial statements are prepared for the
same reporting date as the Company. Consistent accounting policies are applied for like
transactions and events in similar circumstances.
Asia Media Group Berhad Annual Report 2014
87
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
