2012 Annual Report - Media Prima Berhad

Media Prima Berhad
Summary of Significant
Accounting Policies
for the financial year ended 31 December 2012
D
RESEARCH AND DEVELOPMENT
Research and development costs are charged to the profit or loss in the financial year in which they are incurred.
Development costs previously recognised as an expense are not recognised as an asset in the subsequent financial
year. Capitalised development costs are recorded as an intangible asset and amortised from the point at which the
asset is ready for use on a straight-line basis over its useful life not exceeding five years.
E
INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES
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 I on impairment of
non-financial assets.
On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is charged/
credited to the profit or loss.
F
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
The cost of an item of property, plant and equipment initially recognised includes its purchase price and any cost
that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management. Cost also includes borrowing costs that are directly attributable
to the acquisition, construction or production of a qualifying asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when 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. The carrying amount of the replaced part is derecognised. All other repairs and
maintenance costs are charged to the profit or loss during the financial year in which they are incurred.
Freehold land is not depreciated as it has an infinite life. Depreciation on assets under construction commences when
the assets are ready for their intended use.
Depreciation on the other property, plant and equipment is calculated so as to write off the cost or valuation of the
assets to their residual values on a straight line basis over the expected useful lives of the assets, summarised as
follows:
Buildings
Plant and machinery
Broadcasting and transmission equipment
Production equipment
Office equipment, furniture and fittings
Office renovations
Motor vehicles
Leasehold improvements
Structures
20 – 50 years
4 – 25 years
10 years
5 – 10 years
3 – 10 years
3 – 10 years
5 years
3 – 15 years
5 – 10 years
160
annual
report
2012