Pg 108 - Berjaya Corporation Berhad

Notes To The Financial Statements30 April 20082 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)2.2 Summary of Significant Accounting Policies (Cont’d)(b) Associated companies (cont’d)When the Group’s share of losses equals or exceeds its interest in an equity accounted associated company includingany long-term interest that, in substance, form part of the Group’s net investment in the associated company, thecarrying amount of that interest is reduced to nil and the recognition of further losses is discontinued except to theextent that the Group has an obligation or has made payment on behalf of the associated companies.In the Company’s separate financial statements, investment in associated companies are stated at cost less impairmentlosses.(c) Intangible assets(i) GoodwillGoodwill acquired in a business combination is initially measured at cost being the excess of the cost of businesscombination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingentliabilities. Following the initial recognition, goodwill is measured at cost less any accumulated impairment losses.Goodwill is not amortised but instead, it is reviewed for impairment, annually or more frequently if events or changesin circumstances indicate that the carrying value may be impaired. Gains and losses on the disposal of an entityinclude the carrying amount of goodwill relating to the entity sold.(ii) Other intangible assetsThe cost of intangible assets acquired in a business combination is at their fair values as at the date of acquisition.The intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,intangible assets are carried at cost less accumulated amortisation and any accumulated impairment losses.Intangible assets with finite lives are amortised on a straight line basis over the estimated economic useful lives andassessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisationperiod and the amortisation method for an intangible asset are reviewed yearly at each balance sheet date.Research and development costsResearch costs are recognised in the income statement as incurred.Expenditure incurred on projects to develop new products is capitalised and deferred only when the Group candemonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, itsintention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits,the availability of resources to complete the project and the ability to measure reliably the expenditure during thedevelopment. Product development expenditures which do not meet these criteria are expensed when incurred.Development costs, considered to have finite useful lives, are stated at cost less any impairment losses and areamortised using the straight-line basis over the commercial lives of the underlying products. Impairment is assessedwhenever there is an indication of impairment and the amortisation period and method are also reviewed at leastat each balance sheet date.(d) Property, plant and equipment and depreciationProperty, plant and equipment are initially recorded at cost. Subsequent costs are included in the asset’s carrying amountor recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associatedwith the item will flow to the Group and the Company and the cost of the item can be measured reliably. The carryingamount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statementduring the financial period in which they are incurred.Subsequent to recognition, property, plant and equipment except for freehold land are stated at cost less accumulateddepreciation and any accumulated impairment losses.48 Berjaya Sports Toto Berhad (9109-K) Annual Report 2008