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Datasonic Group Berhad
(Company No. 809759-X)
89
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.7 GOODWILL
Goodwill is measured at cost less accumulated impairment losses, if any. The carrying value
of goodwill is reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying amount may be impaired. The impairment value of
goodwill is recognised immediately in profit or loss. An impairment loss recognised for goodwill
is not reversed in a subsequent period.
Under the acquisition method, any excess of the sum of the fair value of the consideration
transferred in the business combination, the amount of non-controlling interests recognised
and the fair value of the Group’s previously held equity interest in the acquiree (if any), over
the net fair value of the acquiree’s identifiable assets and liabilities at the date of acquisition is
recorded as goodwill.
Where the latter amount exceeds the former, after reassessment, the excess represents a
bargain purchase gain and is recognised as a gain in profit or loss.
In respect of equity-accounted associates, the carrying amount of goodwill is included in the
carrying amount of the investment and an impairment loss on such an investment is not allocated
to any asset, including goodwill, that forms part of the carrying amount of the equity-accounted
associates.
4.8 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less accumulated depreciation and
impairment losses, if any.
Depreciation is charged to profit or loss (unless it is included in the carrying amount of another
asset) on the straight-line method to write off the depreciable amount of the assets over their
estimated useful lives. Depreciation of an asset does not cease when the asset becomes idle
or is retired from active use unless the asset is fully depreciated. The principal annual rates used
for this purpose are:-
Furniture and fittings
10% - 20%
Motor vehicles
20%
Office equipment
10% - 33.33%
Machineries
Over the project output, 10% - 50%
Renovation
10% - 33.33%
Buildings
2%
Leasehold land
Over the lease periods of 54 years
The depreciation method, useful lives and residual values are reviewed, and adjusted if
appropriate, at the end of each financial year to ensure that the amounts, method and periods
of depreciation are consistent with previous estimates and the expected pattern of consumption
of the future economic benefits embodied in the items of the property, plant and equipment.
When significant parts of an item of property, plant and equipment have different useful
lives, they are accounted for as separate items (major components) of property, plant and
equipment.