LEEKEE INDUSTRIES (M) SDN - teo seng capital berhad

TEO SENG CAPITAL BERHAD
(Incorporated In Malaysia)
Company No : 732762 - T
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2011
4. ACCOUNTING POLICIES AND STANDARDS (CONT’D)
4.2 Summary of Significant Accounting Policies (Cont’d)
(b)
Intangible assets
Goodwill
Goodwill is identified as any excess of the consideration paid over the Group’s share
of fair value of the identifiable assets, liabilities and contingent liabilities acquired at
the date of acquisition. Where the consideration is lower than the Group’s share of
net fair value of the identifiable assets, liabilities and contingent liabilities acquired,
the difference is recognised as negative goodwill. Negative goodwill is recognised
immediately in profit or loss.
Positive goodwill is carried at cost less any accumulated impairment loss. Goodwill is
subjected to impairment test annually or more frequently if events or changes in
circumstances indicate that the carrying amount might be impaired. The policy for
the recognition and measurement of impairment losses is in accordance with Note
4.2(f)(ii). Gains and losses on the disposal of an entity include the carrying amount of
goodwill relating to the equity sold.
(c)
Property, plant and equipment and depreciation
Items of property, plant and equipment are stated at cost less any accumulated
depreciation and any accumulated impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset
and any other costs directly attributable to bringing the asset to working condition for
its intended use, and the costs of dismantling and removing the items and restoring
the site on which they are located. The cost of self-constructed assets also includes
the cost of materials and direct labour. Purchased software that is integral to the
functionality of the related equipment is capitalised as part of that equipment.
The cost of replacing part of an item of property, plant and equipment is recognised
in the carrying amount of the item if it is probable that the future economic benefits
embodied within the part will flow to the Group and its cost can be measured reliably.
The carrying amount of the replaced part is derecognised. The costs of the day-today
servicing of property, plant and equipment are recognsied in profit or loss as
incurred.
When significant parts of an item of property, plant and equipment have different
useful lives, they are accounted for as separate items (major components) of
property, plant and equipment.
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