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Annual Report 2016
ASIA MEDIA GROUP Berhad
55
Independent Auditors’ Report
(continued)
Report on the Audit of the Financial Statements (cont’d)
Key Audit Matters (cont’d)
Impairment loss on broadcast infrastructure and broadcasting licenses
As discussed in Note 5 and 7 to the financial statements, the Group has material investments in
various non-current assets, including broadcasting infrastructure and broadcasting licenses which
have a net book value amounting to RM19,087,752 as at 31 December 2016. Given the nature of
these assets, the assessment of impairment involves significant estimates and use of assumptions,
and the application of significant judgement.
Determining the recoverable amounts of the assets requires a number of significant judgements and
estimates, especially in respect of the amount of future cash flows and the applied discount rate.
The key assumptions to the impairment assessment and the sensitivity of the recoverable amount to
changes in assumptions are disclosed in Note 5 to the financial statements.
Our audit procedures focused on evaluating management’s assessment are as follows:
•
Evaluating the appropriateness of the Group’s judgements regarding identification of assets and
cash generating units for impairment assessment;
•
Assessing the Group’s calculation of the recoverable amount of property, plant and equipment
and intangible assets. This included:
-
Assessing reasonableness of key assumptions applied by the Group (as disclosed in Note
5 (a) to the financial statements);
•
Evaluating the Group’s analysis of the sensitivity of the impairment test results to changes in
assumptions (as disclosed in Note 5 (a) to the financial statements);
•
Evaluate the adequacy and appropriateness of disclosure of impairment assessment made in
the financial statements.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Directors of the Company are responsible for the other information. The other information comprises
the Directors’ Report and other information included in the annual report, but does not include the
financial statements of the Group and of the Company and our auditors’ report thereon.