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Gamuda Berhad (29579-T) • Annual Report 2012
2.
Summary of significant accounting policies (cont’d.)
2.9 Intangible assets (cont’d.)
a)
Goodwill (cont’d.)
Where goodwill forms part of a cash-generating unit and part of the operation within that cash-
generating unit is disposed of, the goodwill associated with the operation disposed of is included in
the carrying amount of the operation when determining the gain or loss on disposal of the operation.
Goodwill disposed of in this circumstance is measured based on the relative fair values of the operations
disposed of and the portion of the cash-generating unit retained.
Goodwill and fair value adjustments arising on the acquisition of foreign operation are treated as
assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign
operations and translated in accordance with the accounting policy set out in Note 2.22.
b)
Other intangible assets
other intangible assets of the Group comprise of motorway development expenditure, and concession
and quarry rights.
Intangible assets acquired separately are measured initially at cost. The cost of intangible assets
acquired in a business combination is their fair value as at the date of acquisition. Following initial
acquisition, intangible assets are measured at cost less any accumulated amortisation and accumulated
impairment losses.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method are reviewed at least at each financial year-end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied in
the asset is accounted for by changing the amortisation period or method, as appropriate, and are
treated as changes in accounting estimates. The amortisation expense on intangible assets with finite
lives is recognised in profit or loss.
Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or
loss when the asset is derecognised.
2.10 Property, plant and equipment and depreciation
All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant
and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated
with the item will flow to the Group and the cost of the item can be measured reliably.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012