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4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(e)Investments (continued)(iii) Marketable securities (current investments)Marketable securities are carried at the lower of cost and market value, determined on an aggregate portfoliobasis by category of investment. Cost is derived at weighted average basis. Market value is calculated byreference to stock exchange quoted selling prices at the close of business on the balance sheet date. Increaseor decrease in the carrying amount of marketable securities is credited or charged to the IncomeStatement.On disposal of an investment, the difference between net disposal proceeds and the carrying amount iscredited or charged to the Income Statement.(f)Impairment of non-financial assetsAssets that have an indefinite useful life are not subject to amortisation and are tested for impairment annually,and as and when events or circumstances occur indicating that an impairment may exist. Property, plant andequipment and other non-current assets, including intangible assets with definite useful life, are reviewed forimpairment losses whenever events or changes in circumstances indicate that the carrying amount may not berecoverable. An impairment loss is recognised for the amount by which the carrying amount of the asset exceedsits recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell and valuein-use.For the purpose of assessing impairment, assets are grouped at the lowest level for which there isseparately identifiable cash flows (cash-generating units). Assets other than goodwill that suffered an impairmentare reviewed for possible reversal at each reporting date.The impairment loss is charged to Income Statement unless it reverses a previous revaluation in which case it ischarged to the revaluation surplus. Impairment losses on goodwill are not reversed. In respect of other assets, anysubsequent increase in recoverable amount is recognised in the Income Statement unless it reverses an impairmentloss on revalued asset in which case it is taken to revaluation surplus.(g) InventoriesInventories are stated at lower of cost and net realisable value.Cost is determined on a weighted average basis and comprises all cost of purchase and other cost incurred inbringing the inventories to their present location. The cost of finished goods and work in progress comprisesdesign costs, raw materials, direct labour, other direct costs and related production overheads (based on normaloperating capacity). It excludes borrowing costs.Net realisable value represents the estimated selling price in the ordinary course of business, less all estimatedcosts to completion and applicable variable selling expenses. In arriving at the net realisable value, due allowanceis made for all obsolete and slow moving items.Inventories include maintenance spares acquired for the purpose of replacing damaged or faulty plant or sparesand supplies used in constructing and maintaining the network.Axiata Group Berhad • 184