70
GHL Systems Berhad
(293040-D)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014 (continued)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.3 Business combinations (continued)
In a business combination achieved in stages, previously held equity interests in the acquiree are re-
measured to fair value at the acquisition date and any corresponding gain or loss is recognised in
profit or loss.
Components of non-controlling interests in the acquiree that are present ownership interests and
entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation are
initiallymeasured at the present ownership instruments’ proportionate share in the recognised amounts
of the acquiree’s identifiable net assets. All other components of non-controlling interests shall be
measured at their acquisition-date fair values, unless another measurement basis is required by MFRSs.
The choice of measurement basis is made on a combination-by-combination basis. Subsequent to
initial recognition, the carrying amount of non-controlling interests is the amount of those interests at
initial recognition plus the non-controlling interests’ share of subsequent changes in equity.
Any excess of the sum of the fair value of the consideration transferred in the business combination,
the amount of non-controlling interest in the acquiree (if any), and the fair value of the previously
held equity interest of the Group in the acquiree (if any), over the net fair value of the acquiree’s
identifiable assets and liabilities is recorded as goodwill in the statement of financial position. The
accounting policy for goodwill is set out in Note 4.7(a) to the financial statements. In instances where
the latter amount exceeds the former, the excess is recognised as a gain on bargain purchase in
profit or loss on the acquisition date.
4.4 Property, plant and equipment and depreciation
All items of property, plant and equipment are initially measured at cost. Cost includes expenditure
that is directly attributable to the acquisition of the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when the cost is incurred and it is probable that the future economic benefits
associated with the asset would flow to the Group and the cost of the asset could be measured
reliably. The carrying amount of parts that are replaced is derecognised. The costs of the day-to-
day servicing of property, plant and equipment are recognised in profit or loss as incurred. Cost also
comprises the initial estimate of dismantling and removing the asset and restoring the site on which it
is located for which the Group is obligated to incur when the asset is acquired, if applicable.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the
total cost of the asset and which has different useful life, is depreciated separately.
After initial recognition, property, plant and equipment are stated at cost less accumulated
depreciation and any accumulated impairment losses.
Depreciation is calculated to write off the cost of the assets to their residual values on a straight line
basis over their estimated useful lives. The principal depreciation periods are as follows:
Long term leasehold land
99 years
Buildings
50 years
Computer equipment
3 years
EDC equipment
5 years
Computer software
3 to 10 years
Motor vehicles
5 years
Furniture, fittings and office equipment
5 to 10 years
Renovation
2 to 5 years
