DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
80
2.
Significant accounting policies (cont’d)
(d) Leased assets (cont’d)
(i) Finance lease (cont’d)
Minimum lease payments made under finance leases are apportioned between the finance
expense and the reduction of the outstanding liability. The finance expense is allocated to
each period during the lease term so as to produce a constant periodic rate of interest on the
remaining balance of the liability. 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.
Leasehold land which in substance is a finance lease is classified as property, plant and
equipment.
(ii) Operating lease
Leases, where theGroup or theCompany does not assume substantially all the risks and rewards
of ownership are classified as operating leases and the leased assets are not recognised on
the statement of financial position.
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.
Leasehold land which in substance is an operating lease is classified as prepaid lease
payments.
(e) Intangible assets
(i) Goodwill
Goodwill arises on business combinations is measured at cost less any accumulated impairment
losses. In respect of equity-accounted associates, the carrying amount of goodwill is included
in the carrying amount of the investment and an impairment loss on such an investment is
not allocated to any asset, including goodwill, that forms part of the carrying amount of the
equity-accounted associates.
(ii) Other intangible assets
Intangible assets, other than goodwill, that are acquired by the Group, which have finite
useful lives, are measured at cost less any accumulated amortisation and any accumulated
impairment losses.
(iii) Amortisation
Goodwill with indefinite useful lives are not amortised but are tested for impairment annually
and whenever there is an indication that they may be impaired.
Other intangible assets are amortised from the date that they are available for use. Amortisation
is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss
on a straight-line basis over the estimated useful lives of intangible assets
Notes to the
Financial Statements
(cont’d)
