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Annual Report 2016
ASIA MEDIA GROUP Berhad
75
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.3 Intangible assets (cont’d)
(i) Goodwill (cont’d)
The CGU to which goodwill has been allocated is tested for impairment annually and
whenever there is an indication that the CGU may be impaired, by comparing the
carrying amount of the CGU, including the allocated goodwill, with the recoverable
amount of the CGU. Where the recoverable amount of the CGU is less than the
carrying amount, an impairment loss is recognised in profit or loss. Impairment losses
recognised for goodwill are not reversed in subsequent periods.
Where goodwill forms part of a CGU and part of the operation within that CGU is
disposed of, the goodwill associated with the operation disposed of is included in the
carrying amount of the operation when determining the gain or loss on disposal of
the operation. Goodwill disposed of in this circumstance is measured based on the
relative fair values of the operations disposed of and the portion of the CGU retained.
(ii) Research and development costs
Expenditure on research activities is recognised as an expense in the period in which
it is incurred.
An internally-generated intangible asset arising from development (or from the
development phase of an internal project) is recognised if, and only if, all of the
following have been demonstrated:
(i) the technical feasibility of completing the intangible asset so that is will be
available for use or sale;
(ii) the intention to complete the intangible asset and use or sell it;
(iii) the ability to use or sell the intangible asset;
(iv) how the intangible asset will generate probable future economic benefits;
(v) the availability of adequate technical, financial and other resources to complete
the development and to use or sell the intangible asset; and
(vi) the ability to measure reliably the expenditure attributable to the intangible
asset during its development.