Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 54 Key Audit Matters (cont’d) Key Audit Matters How we addressed the key audit matter Valuation of the Broadcast Infrastructure (cont’d) (ii) Impairment assessment on broadcast infrastructure Determination of the recoverable amount requires significant judgement, especially in respect of the estimated cash flow projections and discount rates. The key assumptions used in the impairment assessment and the sensitivity of the recoverable amount to changes in assumptions are disclosed in Note 4 to the financial statements. Based on the impairment assessment performed, the Directors concluded that no impairment is required for broadcast infrastructure. Our audit included the following procedures: (cont’d) (ii) Impairment assessment on broadcast infrastructure - We evaluated the appropriateness of the management’s judgements regarding the identification of assets and cash generating units for impairment assessment; - We assessed the management’s calculation of the recoverable amounts of broadcast infrastructure: - We assessed the key assumptions applied by the management (as disclosed in Note 4 to the financial statements); - We evaluated the management’s analysis of the sensitivity of the impairment assessment results to changes in assumptions (as disclosed in Note 4 to the financial statements); - We evaluated the adequacy and appropriateness of the disclosure of impairment assessment made in the financial statements. Information Other than the financial Statements and Auditors’ Report Thereon The Directors of the Company are responsible for the other information. The other information comprises the annual report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS ASIA MEDIA GROUP BERHAD (cont’d)