Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 83 3. Significant Accounting Policies (cont’d) (c) Property, plant and equipment (cont’d) (i) Recognition and measurement (cont’d) Capital work-in-progress consists of plant and machinery under construction/installation for intended use as production facilities. The amount is stated at cost and includes capitalisation of interest incurred on borrowings related to property, plant and equipment under construction/ installation until the property, plant and equipment are ready for their intended use. The new components or parts of the Transit TV System (such as LCD screens, media players, amplifiers etc.) purchased during the financial year is captured as capital work-in-progress. The said capital work-in-progress will be reclassified to Transit TV System in the subsequent financial year after proper installation and integration and become ready to use. (ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in the profit or loss as incurred. (iii) Depreciation Depreciation is recognised in the profit or loss on straight line basis to write off the cost of each asset to its residual value over its estimated useful life. Leased assets are depreciated over the shorter of the lease term and their useful lives. Immature bearer plants and capital work-in- progress is not depreciated until the assets are ready for its intended use. Property, plant and equipment are depreciated based on the estimated useful lives of the assets as follows: Transit TV System 10% Broadcast centre, network and SMS gateway 10% (2016: 20%) Furniture and fittings 20% Computer software 10% Motor vehicles 20% Office equipment 20% Plant and machinery 10% Renovation and signboard 10% Bearer plants 30 years NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)