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GHL Systems Berhad
(293040-D)
Annual report 2015
Notes to the Financial Statements
31 December 2015 (continued)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.6 Investments (continued)
(b) Joint arrangements (continued)
(ii) Joint venture (continued)
Any premium paid for an investment in a joint venture above the fair value of the share of the
identifiable assets, liabilities and contingent liabilities acquired of the Group is capitalised and
included in the carrying amount of the investment in joint venture. Where there is an objective
evidence that the investment in a joint venture has been impaired, the carrying amount of
the investment is tested for impairment in accordance with MFRS 136
Impairment of Assets
as
a single asset, by comparing its recoverable amount with its carrying amount.
The Group recognises its interest in a joint venture as an investment and accounts for that
investment using the equity method in accordance with MFRS 128
Investments in Associates
and Joint Ventures
.
The Group determines the type of joint arrangement in which it is involved, based on the rights
and obligations of the parties to the arrangement. In assessing the classification of interests in
joint arrangements, the Group considers:
(a) The structure of the joint arrangement;
(b) The legal form of joint arrangements structured through a separate vehicle;
(c) The contractual terms of the joint arrangement agreement; and
(d) Any other facts and circumstances.
When there are changes in the facts and circumstances change, the Group reassesses
whether the type of joint arrangement in which it is involved has changed.
4.7 Intangible assets
(a) Goodwill
Goodwill recognised in a business combination is an asset at the acquisition date and is initially
measured at cost being the excess of the sum of the consideration transferred, the amount of any
non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity
interest (if any) in the entity over net of the acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed. If, after reassessment, the interest of the Group in the fair
value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred,
the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s
previously held equity interest in the acquiree (if any), the excess is recognised immediately in
profit or loss as a bargain purchase gain.