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ASIA MEDIA GROUP Berhad
Annual Report 2016
98
Notes to the Financial Statements
(continued)
5.
Property, plant and equipment (cont’d)
a) Capital work in progress, broadcasting centre, network and SMS gateway (“Broadcasting
Infrastructure”) & other intangible assets (“Broadcasting Licences”) (cont’d)
The key assumptions used in the value in use calculations are as follows:
Growth rate
0%
EBITDA margin
16%
Pre-tax discount rate
9.70%
The key assumptions represent management’s assessment of future trends in the live
broadcasting industry and are based on both external sources and internal sources.
The balance carrying amount of RM16,248,716 (2015: RM23,840,736) of Broadcasting
Infrastructure and Broadcasting Licences remain unimpaired. From the above assumptions,
by their very nature are difficult to forecast and are regarded as significant areas of
uncertainty which remain a risk that the ability to achieve management’s business plan will
be adversely affected due to unforeseen changes in the business plan and the respective
economies in which the Group and the Company operates.
The Directors are confident to achieve the business plan as per the projection as the
management believe that the country will move towards live broadcasting in near future.
Sensitivity to changes in assumption
Based on the sensitivity analysis performed as follows:
(i) No growth in revenue would result a RM1,434,800 (2015: RM1,300,280) increase
in the impairment charges.
(ii) Revenue decrease by 50% would result a RM8,831,661 (2015: RM11,920,368)
increase in the impairment charges.
6.
Plantation development expenditure
Group
2016
2015
RM
RM
Cost
At 31 December
2,437,688
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