2012 Annual Report - Media Prima Berhad

Media Prima Berhad
Summary of Significant
Accounting Policies
for the financial year ended 31 December 2012
AA FINANCIAL ASSETS (CONTINUED)
(v) Subsequent measurement – impairment of financial assets (continued)
(b) Assets classified as available-for-sale
The Group assesses at the end of the reporting period whether there is objective evidence that a financial
asset or a group of financial assets is impaired.
For debt securities, the Group uses criteria and measurement of impairment loss applicable for ‘assets
carried at amortised cost’ above. If, in a subsequent period, the fair value of a debt instrument classified
as available-for-sale increases and the increase can be objectively related to an event occurring after the
impairment loss was recognised in net profit for the financial year, the impairment loss is reversed through
the profit or loss.
In the case of equity securities classified as available-for-sale, in addition to the criteria for ‘assets carried
at amortised cost’ above, a significant or prolonged decline in the fair value of the security below its cost
is also considered as an indicator that the assets are impaired. If any such evidence exists for availablefor-sale
financial assets, the cumulative losses that had been recognised directly in equity is removed from
equity and recognised in net profit for the financial year. The amount of cumulative losses that is
reclassified to net profit for the financial year is the difference between the acquisition cost and the current
fair value, less any impairment losses on that financial asset previously recognised in net profit for the
financial year. Impairment losses recognised in net profit for the financial year on equity instruments
classified as available-for-sale are not reversed through profit or loss.
(vi) De-recognition
Financial assets are de-recognised when the rights to receive cash flows from the investments have expired or
have been transferred and the Group has transferred substantially all risks and rewards of ownership.
When available-for-sale financial assets are sold, the accumulated fair value adjustments recognised in other
comprehensive income are reclassified to net profit for the financial year.
AB CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
(a)
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, rarely equal the related actual results. To enhance the information content of the estimates, certain
key variables that are anticipated to have a material impact to the Group’s results and financial position are
tested for sensitivity to changes in the underlying parameters. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are outlined below:
(i)
Assessment of impairment of non-financial assets (excluding goodwill)
174
annual
report
2012
The Group assesses impairment of the non-financial assets (excluding goodwill) whenever the events or
changes in circumstances indicate that the carrying amount may not be recoverable (i.e. the carrying
amount is more than the recoverable amount).