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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
75
3.
Summary of significant accounting policies (cont’d)
(f) Impairment of non-financial assets
The Group and the Company assess at each reporting date whether there is an indication
that an asset may be impaired.If any such indication exists, or when an annual impairment
assessment for an asset is required, the Group or the Company makes an estimate of the
asset’s recoverable amount.
For the purpose of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (CGU). An asset’s recoverable amount
is the higher of an asset’s fair value less costs to sell and its value-in-use. Where the
carrying amount of an asset exceeds its recoverable amount, the asset is written down to
its recoverable amount.
In assessing value-in-use, the estimated future cash flows expected to be generated by
the asset are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs to sell, recent market transactions are taken
into account. If no such transactions can be identified, an appropriate valuation model is
used. These calculations are corroborated by valuation multiples, quoted share prices for
publicly traded companies or other available fair value indicators.
Impairment losses are recognised in profit or loss except for assets that have been
previously revalued where the revaluation was taken to other comprehensive income.
In this case, the impairment is also recognised in other comprehensive income up to the
amount of any previous revaluation.
An impairment loss in respect of goodwill is not reversed. For other financial assets, an
assessment is made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. A
previously recognised impairment loss is reversed only if there has been a change in the
estimates used to determine the asset’s recoverable amount since the last impairment
loss was recognised. If that is the case, the carrying amount of the asset is increased
to its recoverable amount. That increase cannot exceed the carrying amount that would
have been determined, net of depreciation or amortisation, had no impairment loss been
recognised previously. Such reversal is recognised in profit or loss.