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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
72
3.
Summary of significant accounting policies (cont’d)
(c) Foreign currencies (cont’d)
(iii) Foreign operations
The assets and liabilities of foreign operations are translated into RM at the rate of
exchange ruling at the reporting date and income and expenses are translated at
exchange rates at the dates of the transactions. The exchange differences arising on
the translation are taken directly to other comprehensive income through the foreign
currency translation reserve. On disposal of a foreign operation, the cumulative
amount recognised in other comprehensive income and accumulated in equity under
foreign currency translation reserve relating to that particular foreign operation is
recognised in the profit or loss.
(d) Intangible assets
(i) Goodwill
Goodwill is initially measured at cost, being the excess of the aggregate of the
consideration transferred and the amount recognised for non-controlling interests
over the net identifiable assets acquired and liabilities assumed. If the fair value of the
net assets acquired is in excess of the aggregate consideration transferred, the gain
is recognised in profit or loss. After initial recognition, goodwill is measured at cost
less accumulated impairment losses. Goodwill is reviewed for impairment annually,
or more frequently, if events or changes in circumstances indicate that the carrying
value may be impaired.
For the purpose of impairment testing, goodwill acquired is allocated, from the
acquisition date, to each of the Group’s cash-generating units (“CGU”) that are
expected to benefit from the synergies of the combination.
The CGU to which goodwill has been allocated is tested for impairment annually and
whenever there is an indication that the CGU may be impaired, by comparing the
carrying amount of the CGU, including the allocated goodwill, with the recoverable
amount of the CGU.Where the recoverable amount of the CGU is less than the
carrying amount, an impairment loss is recognised in profit or loss. Impairment losses
recognised for goodwill are not reversed in subsequent periods.
Where goodwill forms part of a CGU and part of the operation within that CGU is
disposed of, the goodwill associated with the operation disposed of is included in the
carrying amount of the operation when determining the gain or loss on disposal of
the operation. Goodwill disposed of in this circumstance is measured based on the
relative fair values of the operations disposed of and the portion of the CGU retained.