96 / 140
Asia Media Group Berhad
►
Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
95
5.
Property, plant and equipment (cont’d)
During the current financial year, a subsidiary carried out a review of the recoverable amounts
of the following assets as the subsidiary has been persistently making losses and pro-longed
delay in rolling out the digital live transit-TV broadcasting. The recoverable amounts of these
assets were determined based on value in use.
a) Transit TV system
An impairment loss of RM4,577,103, representing the write-down of the excess of the
carrying value over its recoverable amount was recognised in the profit or loss during the
year.
b) Capital work in progress, broadcasting centre, network and SMS gateway (“Broadcasting
Infrastructure”) & other intangible assets (“Broadcasting Licences”)
Broadcasting Broadcasting
Total
infrastructure
licences
(Note 6)
RM
RM
RM
Cost at end of the financial year
121,157,561 2,367,750 123,525,311
Less: Accumulated depreciation/
amortisation at the end of the
financial year
(27,064,592)
(1,183,875) (28,248,467)
94,092,969 1,183,875 95,276,844
Less: Impairment loss for the
financial year (Note 17)
(70,548,469)
(887,639) (71,436,108)
Carrying amount at end of the
financial year
23,544,500
296,236 23,840,736
Broadcasting Infrastructure and Broadcasting Licences were classified as one combined
CGU (“Combined CGU”) and were tested for impairment. Following the review of projected
cash flows, the Combined CGU is not expected to generate sufficient cash flows in the
next five years. Consequently, a total impairment loss of RM71,436,108 was provided as
the carrying amount was in excess than its recoverable amount.