4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
n) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to
get ready for their intended use or sale, are added to the cost of those assets, until such
time as the assets are substantially ready for their intended use or sale.
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 other borrowing costs are recognised in profit or loss in the year in which they are
incurred.
o) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits and
short 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.
Ordinary shares are recorded at the proceeds received, net of directly attributable
incremental transaction costs. Ordinary shares are classified as equity. Dividends on
ordinary shares are recognised in equity in the period in which they are declared.
q) Contingencies
A contingent liability or asset is a possible obligation or asset that arises from past events
and whose existence will be confirmed only by the occurrence or non-occurrence of
uncertain future event(s) not wholly within the control of the Group.
Contingent liabilities and assets are not recognised in the statements of financial position
of the Group.
r)
Operating Segments
An operating segment is a component of the Group that engages in business activities from
which it may earn revenues and incur expenses, including revenues and expenses that
relate to transactions with any of the Group’s expenses, including revenues and expenses
that relate to transactions with any of the Group’s other components. An operating segment’s
operating results are reviewed regularly by the chief operating decision maker, which in
this case is the Chief Executive Officer of the Group, to make decisions about resources to
be allocated to the segment and assess its performance, and for which discrete financial
information is available.
Asia Media Group Berhad Annual Report 2014
97
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
