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AEMULUS HOLDINGS BERHAD
TA R G E T I N G T H E B U L L’ S E Y E
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
3.3 Leases (Cont’d)
Operating lease
Leases, where the Group does not assume substantially all the risks and rewards of ownership are classified as
operating leases and, except for property interest held under operating lease, the leased assets are not recognised
on the statement of financial position. Property interest held under an operating lease, which is held to earn rental
income or for capital appreciation or both, is classified as investment property.
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of
the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense,
over the term of the lease. Contingent rentals are charged to profit or loss in the reporting period in which they are
incurred.
3.4 Intangible Assets
3.4.1 Goodwill
Goodwill acquired through business combination is initially measured at cost being the excess of the cost
of business acquired over the Group’s interest in the net fair value of the identifiable assets, liabilities and
contingent liabilities. Following the initial recognition, goodwill is measured at cost less any accumulated
impairment losses.
Goodwill is not amortised but instead, it is reviewed for impairment, annually or more frequently if events
or changes in circumstances indicate that the carrying value may be impaired. Gains and losses on the
disposal of an entity include the carrying amount of goodwill relating to the entity sold.
3.4.2 Trademarks and Patents
Trademarks and patents are intangible assets with indefinite useful life and are tested for impairment
annually or more frequently if the events or changes in circumstances indicate that the carrying value may
be impaired either individually or at cash-generating unit level. Such intangibles are not amortised. The
useful life of an intangible asset with an indefinite life is reviewed annually to determine whether the useful
life assessment continues to be supportable. If not, the change in useful life from indefinite to finite is made
on a prospective basis.
3.5 Impairment of Non-Financial Assets
The Group and the Company assess at the end of each reporting period whether there is an indication that an
asset may be impaired.
For the purpose of impairment testing, recoverable amount (i.e. the higher of the fair value less cost to sell and
value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are
largely independent of those from other assets. If this is the case, the recoverable amount is determined for the
cash-generating units (“CGU”) to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment loss in the
profit or loss.
An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine
the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of this asset is
increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that
would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years. A reversal of impairment loss for an asset is recognised in profit or loss.
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
– 30 SEPTEMBER 2016