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Axiata Group Berhad | Annual Report 2016
FINANCIAL STATEMENTS
138
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Property, plant and equipment (“PPE”) (continued)
(iv) Gains or losses on disposals
Gains or losses on disposals are determined by comparing the proceeds with the carrying amount of the related asset and are included
in “other operating income – net” in profit or loss.
(v) Asset exchange transaction
PPE may be acquired in exchange for a non-monetary asset or for a combination of monetary and non-monetary assets and is measured
at fair value unless;
•
the exchange transaction lacks commercial substance; or
•
the fair value of neither the assets received nor the assets given up can be measured reliably.
The acquired item is measured in this way even if the Group and the Company cannot immediately derecognise the assets given up. If
the acquired item cannot be reliably measured at fair value, its cost is measured at the carrying amount of the asset given up.
(vi) Repairs and maintenance
Repairs and maintenance are charged to the profit or loss during the period in which they are incurred. The cost of major renovations
is included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed
standard of performance of the existing asset will flow to the Group and the Company. This cost is depreciated over the remaining useful
life of the related asset.
(d) Investments in subsidiaries and associates in separate financial statements
In the Company’s separate financial statements, investments in subsidiaries and associates are stated at cost less accumulated impairment
losses.
Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable
amount. See accounting policy Note 3(e) to the financial statements on impairment of non-financial assets.
On disposal of investments in subsidiaries and associates, the difference between the disposal proceed and its carrying amount of the
investment is recognised in profit or loss. Disposal-related costs are expensed as incurred.
The amount due from subsidiaries of which the Company does not expect repayment in the foreseeable future are considered as part of the
Company’s investments in the subsidiaries.
(e) Impairment of non-financial assets (excluding goodwill)
Assets that have an indefinite useful life are not subject to amortisation and are tested for impairment annually, and as and when events or
circumstances occur indicating that an impairment may exist.
Assets with definite useful life are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell (“FVLCS”) and value-in-use (“VIU”). For the
purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows (“CGUs”). Assets
that suffered an impairment are reviewed for possible reversal at the end of reporting period.
For investment in associates, when assessing FVLCS, the unit of account is the investment in associate as a whole. The Group uses the
adjusted quoted price (as disclosed in Note 29 (c) to the financial statements) which reflects the management’s estimate of block discounts
on similar purchases of NCI as one of the impairment indicator.
The impairment loss is charged to profit or loss. Any subsequent increase in recoverable amount is recognised in the profit or loss.