Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 35 3. Significant accounting policies (continued) (d) Intangible assets (i) Goodwill Goodwill arises on business combination is measured at cost less any accumulated impairment losses. 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. (ii) Other intangible assets Intangible assets, other than goodwill, that are acquired by the Group, which have finite useful live, are measured at cost less any accumulated amortisation and any accumulated impairment losses. (iii) Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific assets to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred. (iv) Amortisation Goodwill and intangible assets which indefinite useful lives are not amortised but are tested for impairment annually and whenever there is an indication that they may be impaired. Other intangible assets are amortised from the date that they are available for use. Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on a usage basis over the estimated production of gas quota. Amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted, if appropriate. (e) Inventories Inventories are stated at the lower of cost (determined on the first-in, first-out basis) and net realisable value. The cost of inventories include expenditure in acquiring the inventories and bringing them to their existing location and condition. Net realisable value represents the estimated selling price in the ordinary course of business, less the estimated costs completion and estimated costs necessary to make the sale.