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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
Intangible Assets (Cont’d)
Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on
a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use.
Amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted,
if appropriate.
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.
Functional and Foreign Currencies
(i)
Functional and presentation currency
The individual financial statements of each entity in the Group are presented in the currency of the primary
economic environment in which the entity operates, which is the functional currency.
The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional
and presentation currency.
(ii) Transactions and balances
Transactions in foreign currencies are converted into the respective functional currencies on initial recognition,
using the exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities at
the end of the reporting period are translated at the rates ruling as of that date. Non-monetary assets and liabilities
are translated using exchange rates that existed when the values were determined. All exchange differences are
recognised in profit or loss.
(iii) Foreign operations
Assets and liabilities of foreign operations are translated to RM at the rates of exchange ruling at the end of
the reporting period. Income, expenses and other comprehensive income of foreign operations are translated at
exchange rates ruling at the dates of the transactions. All exchange differences arising on translation are taken
directly to other comprehensive income and accumulated in equity, attributed to the owners of the Company and
non-controlling interests, as appropriate.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and
liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and
translated at the closing rate at the end of the reporting period.
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)