Download - Axiata Group Berhad - Investor Relations

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 20094. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(b) Intangible assets (continued)(i) Goodwill (continued)Goodwill is carried at cost less accumulated impairment losses. Goodwill is tested for impairment at leastannually, or when events or circumstances occur indicating that an impairment may exist. Impairment ofgoodwill is charged to the Consolidated Income Statement as and when it arises. Impairment losses ongoodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount ofgoodwill relating to the entity disposed.Goodwill is allocated to cash-generating units for the purpose of impairment testing. Each cash-generatingunit or a group of cash-generating units represents the lowest level within the Group at which goodwill ismonitored for internal management purposes and which are expected to benefit from the synergies of thecombination. The Group allocates goodwill to each business segment in each country in which it operates.Goodwill on acquisition of jointly controlled entities and associates occurring on or after 1 January 2002 isincluded in the investments in jointly controlled entities and associates respectively. Such goodwill is testedfor impairment as part of the overall carrying amount.Goodwill on acquisitions that occurred prior to 1 January 2002 was written off against reserves in the financialyear of acquisition.(ii)LicencesAcquired licences are shown at cost. Licences have finite useful lives and are carried at cost less accumulatedamortisation. Amortisation is calculated using straight line method, from the effective date of commercialisationof services, subject to impairment, to the end of the assignment period. Licences are not revalued.(c)Property, plant and equipmentProperty, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Costincludes expenditure that is directly attributable to the acquisition of the items.(i)CostThe cost of telecommunication network includes cost of equipment, site surveys, contractors’ charges,materials and related overhead. The cost of other property, plant and equipment comprises their purchasecost and any incidental cost of acquisition. These costs include the costs of dismantling, removal andrestoration, the obligation which was incurred as a consequence of installing the asset.Subsequent cost is included in the carrying amount of the asset or recognised as appropriate only when itis probable that the future economic benefit associated with the item will flow to the Group and the cost ofthe item can be measured reliably. The carrying value of the replaced part is derecognised. All other repairsand maintenance are charged to the Income Statement during the period in which they are incurred.Annual Report 2009 • 181