2012 Annual Report - Media Prima Berhad

Media Prima Berhad
Summary of Significant
Accounting Policies
for the financial year ended 31 December 2012
S
CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Group and Company do not recognise a contingent liability but disclose its existence in the financial statements.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence and non-occurrence of one or more uncertain future events beyond the control of the Group and
Company or a present obligation that is not recognised because it is not probable that an outflow of resources will
be required to settle the obligation. A contingent liability also arises in the extremely rare circumstance where there
is a liability that cannot be recognised because it cannot be measured reliably.
A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group and
Company. The Group and Company do not recognise contingent assets but disclose their existence where inflows
of economic benefits are probable, but not virtually certain.
T
SHARE CAPITAL
Ordinary shares are classified as equity.
Incremental external costs directly attributable to the issuance of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s financial statements
in the period in which the dividends are approved by the Company’s shareholders. However, in the case of interim
dividends, it is recognised as liability upon approval by the Board of Directors of the Company.
U
DEBT INSTRUMENTS
Debt instruments are recognised initially at fair value, net of transaction costs incurred with any difference between
the initial fair value and proceeds (net of transaction costs) being charged to profit or loss at initial recognition. In
subsequent periods, debt instruments are stated at amortised cost using the effective interest method with the
difference between the initial fair value and the redemption value is recognised in the profit or loss over the period
of the debt instruments.
V
WARRANTS RESERVE
Proceeds from the issuance of warrants, net of issuance costs, are credited to warrants reserve which is nondistributable.
Warrants reserve are transferred to the share premium reserve upon the exercise of warrants. Warrants
reserve in relation to unexercised warrants at the expiry of the warrants period is transferred to retained earnings.
W
BORROWINGS
Borrowings are recognised initially at fair value, net of transaction costs incurred with any difference between the
initial fair value and proceeds (net of transaction costs) being charged to profit or loss at initial recognition. In
subsequent periods, borrowings are stated at amortised cost using the effective interest method with the difference
between the initial fair value and the redemption value is recognised in the profit or loss over the period of the
borrowings.
Interest, dividends, losses and gains relating to a financial instrument, or a component part, classified as a liability is
reported within finance cost in the profit or loss.
168
annual
report
2012