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ASIA MEDIA GROUP Berhad
Annual Report 2016
74
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.2 Foreign currencies transactions
Transactions in foreign currencies are measured in the respective functional currencies of
the Company and its subsidiaries and are recorded on initial recognition in the functional
currencies at exchange rates approximating those ruling at the transaction dates.
Monetary assets and liabilities denominated in foreign currencies are translated at the
rate of exchange ruling at the reporting date. Non-monetary items denominated in foreign
currencies that are measured at historical cost are translated using the exchange rates
as at the dates of the initial transactions. Non-monetary items denominated in foreign
currencies measured at fair value are translated using the exchange rates at the date
when the fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary
items at the reporting date are recognised in profit or loss except for exchange differences
arising on monetary items that form part of the Group's net investment in foreign operations,
which are recognised initially in other comprehensive income and accumulated under
foreign currency translation reserve in equity. The foreign currency translation reserve is
reclassified from equity to profit or loss of the Group on disposal of the foreign operation.
Exchange differences arising on the translation of non-monetary items carried at fair
value are included in profit or loss for the period except for the differences arising on the
translation of non-monetary items in respect of which gains and losses are recognised
directly in equity. Exchange differences arising from such non-monetary items are also
recognised directly in equity.
3.3 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.