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ASIA MEDIA GROUP Berhad
Annual Report 2016
90
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.18 Warrant reserve
Proceeds from the issuance of warrant, net of issue costs, are credited to warrant reserve
which is non-distributable. Warrant reserve is transferred to the share premium account
upon the exercise of warrant and the warrant reserve in relation to the unexercised warrant
at the expiry of the warrant will be transferred to retained earnings.
3.19 Contingencies
A contingent liability or asset is a possible obligation or asset that arises from past events
and whose existence will be confirmed only by the occurrence or non-occurrence of
uncertain future event(s) not wholly within the control of the Group or the Company.
Contingent liabilities and assets are not recognised but disclosed in the notes to the
financial statements, unless the possibility of an outflow and inflow of resources embodying
economic benefits is remote. When a change in the probability of an outflow occurs so
that the outflow is probable, it will then be recognised as provision.
3.20 Related parties
A party is related to an entity if:
(i) directly, or indirectly through one or more intermediaries, the party:
•
control, is controlled by, or is under common control with, the entity (this includes
parents, subsidiaries and fellow subsidiaries);
•
has an interest in the entity that gives it significant influence over the entity; or
•
has joint control over the entity;
(ii) the party is an associate of the entity;
(iii) the party is a joint venture in which the entity is a venturer;
(iv) the party is a member of the key management personnel of the entity or its parent;
(v) the party is a close member of the family of any individual referred to in (i) or (iv);
(vi) the party is an entity that is controlled, joint controlled or significantly influenced by,
or for which significant voting power in such entity resides with, directly or indirectly,
any individual referred to in (iv) or (v); or