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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
74
3.
Summary of significant accounting policies (cont’d)
(e) Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. The cost of an item
of property, plant and equipment is recognised as an asset if, and only if, it is probable that
future economic benefits associated with the item will flow to the Group or the Company
and the cost of the item can be measured reliably.
Subsequent to initial recognition, property, plant and equipment are measured at cost less
accumulated depreciation and any accumulated impairment losses.
When significant parts of property, plant and equipment are required to be replaced in
intervals, the Group or the Company recognises such parts as individual assets with specific
useful lives and depreciation, respectively. Likewise, when a major inspection is performed,
its cost is recognised in the carrying amount of the property, plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs
are recognised in profit or loss as incurred.
Depreciation is computed on the straight-line basis over the estimated useful lives of the
assets, at the following annual rates:
Transit TV system
33%
Broadcast centre, network and SMS gateway
10%
Furniture and fittings
20%
Computer software
10%
Motor vehicles
20%
Office equipment
20%
Plant and machinery
10%
Renovation and signboard
10%
The carrying values of property, plant and equipment are reviewed for impairment when
events or changes in circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial
yearend, 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. Any gain or loss on derecognition
of the asset is included in profit or loss in the year the asset is derecognised.