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ASIA MEDIA GROUP Berhad
Annual Report 2016
76
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.3 Intangible assets (cont’d)
(ii) Research and development costs (cont’d)
The amount initially recognised for internally-generated intangible assets is the sum of
the expenditure incurred from the date when the intangible asset can be recognised,
development expenditure is recognised in profit or loss in the period in which it is
incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at
cost less accumulated amortisation and accumulated impairment losses. Capitalised
development costs recognised as intangible assets are amortised from the point
at which the asset is ready for use on a straight-line basis over its useful life, not
exceeding 5 years.
(iii) Other intangible assets
Other intangible assets comprise licences, copyrights and other incidental costs
incurred, are considered to have finite useful life due to the technological risks and
advancement inherent in the industry. Other intangible assets of the Group or the
Company are amortised on the straight-line basis over their estimated useful lives
of 10 years.
3.4 Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. The cost of an item
of property, plant and equipment is recognised as an asset if, and only if, it is probable that
future economic benefits associated with the item will flow to the Group or the Company
and the cost of the item can be measured reliably.
Subsequent to initial recognition, property, plant and equipment are measured at cost less
accumulated depreciation and any accumulated impairment losses.
When significant parts of property, plant and equipment are required to be replaced in
intervals, the Group or the Company recognises such parts as individual assets with specific
useful lives and depreciation, respectively. Likewise, when a major inspection is performed,
its cost is recognised in the carrying amount of the property, plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs
are recognised in profit or loss as incurred.