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AEMULUS HOLDINGS BERHAD
A N N U A L R E P O R T 2 0 1 6
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
3.1 Basis of Consolidation (Cont’d)
(iv) Loss of control
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the subsidiary,
any non-controlling interests and the other components of equity related to the former subsidiary from the
consolidated statement of financial position. Any surplus or deficit arising on the loss of control is recognised
in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at
fair value at the date that control is lost. Subsequently it is accounted for as an equity accounted investee or
as an available-for sale financial asset depending on the level of influence retained.
(v) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements.
3.2 Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment
losses.
Property, plant and equipment are depreciated on the straight line method to write off the cost of the assets to
their residual value over their estimated useful lives, at the following annual rates:
Freehold commercial lot
2%
Office and testing equipment
10% - 20%
Furniture and fittings
10%
Renovation
10%
Motor vehicles
10%
Depreciation on capital expenditure in progress commences when the assets are ready for their intended use.
The residual value, useful life and depreciation method are reviewed at the end of each reporting period to ensure
that the amount, method and period of depreciation are consistent with previous estimates and the expected
pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.
Upon the disposal of an item of property, plant and equipment, the difference between the net disposal proceed
and its carrying amount is recognised in profit or loss.
3.3 Leases
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement
at the inception date, whether fulfilment of the arrangement is dependent on the use of a specific asset or the
arrangement conveys a right to use the asset, even if that right is not explicitly specific in an arrangement.
Finance lease
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership, which include hire
purchase arrangement, are classified as finance lease. Upon initial recognition, the leased asset is measured at an
amount equal to the lower of its fair value and the present value of the minimum lease payments.
Minimum lease payments made under finance leases are apportioned between finance charges and reduction
of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
charges are recognised in finance costs in the profit or loss. Contingent lease payments are accounted for by
revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that
the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the
estimated useful life of the asset and the lease term.
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
– 30 SEPTEMBER 2016