4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
s) Warrant Reserve
Proceeds from the issuance of warrant, net of issue costs, are credited to warrant reserve
which is non-distributable. Warrant reserve is transferred to the share premium account
upon the exercise of warrant and the warrant reserve in relation to the unexercised warrant
at the expiry of the warrant will be transferred to retained earnings.
5) CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
The preparation of financial statements in conformity with MFRS requires the use of certain critical
accounting estimates and assumptions that affect the reported amounts of assets and liabilities,
and disclosure of contingent assets and liabilities at the date of the financial statements, and the
reported results during the reported period. It also requires directors to exercise their judgement
in the process of applying the Group’s and the Company’s accounting policies. Although these
estimates and judgement are based on the director’s best knowledge of current events and
actions, actual results may differ.
Critical Judgements in Applying the Group’s and the Company’s Accounting Policies
In the process of applying the Group’s and the Company’s accounting policies, which are
described in Note 4 above, the directors are of the opinion that there are no instances of
application of judgement which are expected to have significant effect on the amounts recognised
in the financial statements.
Key Sources of Estimation Uncertainty
The key assumptions made concerning the future, and other key sources of estimation uncertainty
at the reporting date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year is discussed below:
(i) Depreciation of Property, Plant and Equipment
The Group determines the estimated useful lives and related depreciation charges for the
Group’s property, plant and equipment. The estimate is based on the historical experience
of the actual useful lives of property, plant and equipment of similar nature and function.
Management will revise the depreciation charge where useful lives are different to those
previously estimated, or it will write off or write down technically obsolete or non strategic
assets that have been abandoned or sold.
Asia Media Group Berhad Annual Report 2014
98
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
