Annual Report 2011 - The Malaysian Institute Of Certified Public ...

President’s Statement Financial Statement852.5 Impairment of Non-Financial AssetsThe carrying amounts of non-financial assets (other than inventories of study manuals, and deferred taxassets) are reviewed for impairment at the end of each reporting period to determine whether there isany indication of impairment. If any such indication exists, the asset’s recoverable amount is estimatedto determine the amount of impairment loss. Impairment losses are provided when the carrying amountof an asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fairvalue less costs to sell and its value in use which is measured by reference to discounted future cashflows.An impairment loss is charged to the profit or loss in the period in which it arises, unless the assetis carried at revalued amount. Any impairment loss of a revalued asset is recognised in othercomprehensive income for that asset to the extent that the impairment loss does not exceed the amountheld in the revaluation surplus account.An impairment loss for an asset is reversed if, and only if, there has been a change in the estimatesused to determine the asset’s recoverable amount since the last impairment loss was recognised.The carrying amount of an asset is increased to its revised recoverable amount, provided that thisamount does not exceed the carrying amount that would have been determined (net of amortisationor depreciation) had no impairment loss been recognised for the asset in prior years. A reversal ofimpairment loss for an asset is recognised in profit or loss.2.6 Study ManualsThe costs of development of the MICPA study manuals consisting mainly of writers’ and reviewers’ feesare capitalised and amortised on a straight line basis over the economic lives of the study manuals,which are estimated at 3 to 5 years.Fees incurred for updating of the MICPA study manuals are expensed in the year the fees are incurred.Inventories of study manuals are stated at the lower of cost and net realisable value. Cost is determinedon a first-in, first-out basis and consists of printing cost. Net realisable value is the estimated sellingprice in the ordinary course of business less estimated costs to sell.2.7 Intangible Assets Acquired Separately - Computer SoftwareIntangible assets acquired separately are carried at cost less any accumulated amortisation and anyaccumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimateduseful lives, which is estimated at 3 years. The estimated useful life and amortisation method arereviewed at the end of each reporting period with the effect of any changes in estimate being accountedfor on a prospective basis.