2. Significant accounting policies (CONT’D.)
2.5 Summary of significant accounting policies (cont’d.)
(x) Non-current assets held for sale
Non-current assets or disposal groups are classified as being held for sale if their carrying amount is
recovered principally through a sale transaction rather than through continuing use. These assets are
measured at the lower of carrying amount and fair value less costs of disposal when the sale is highly
probable and the assets or disposal group is available for immediate sale in its present condition
subject only to the terms that are usual and customary.
(y) Fair value measurement
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable; and
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
As at 31 December 2015, financial instruments of the Group and the Company were measured as fair
value based on the Level 3 input.
3. Significant accounting judgements and estimates
Estimates, assumptions concerning the future and judgements are made in the preparation of the financial
statements. The estimates, assumptions and judgements that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed as
follows:
(i) Impairment of goodwill
The Group tests whether goodwill has suffered any impairment on an annual basis. This requires the
estimation of value in use of the assets or cash-generating units (CGU) to which the goodwill is allocated.
Estimating the value in use requires management to make an estimate of the expected future cash flows
from the asset or CGU and also to choose a suitable discount rate in order to calculate the present value
of those cash flows. The preparation of the estimated future cash flows involves significant judgement and
estimations. While the Group believes that the assumptions are appropriate and reasonable, changes in
the assumptions may materially affect the assessment of recoverable amounts. The carrying amount of
goodwill as at 31 December 2015 was RM2,785,000 (2014: RM2,785,000).
an n ual repo rt 2015
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