BERJAYA SPORTS TOTO BERHAD

37
N O T E S T O T H E A C C O U N T S
30 APRIL 1998
1 SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of accounting
The accounts are prepared under the historical cost convention and comply with approved accounting
standards.
(b) Basis of consolidation
The consolidated accounts include the audited accounts of the Company and all its subsidiary
companies made up to 30 April.
The results of subsidiary companies acquired or disposed of during the financial year are included in
the consolidated profit and loss account from the date of the acquisition or up to the date of their
disposal.
(c) Goodwill on consolidation
The excess of the purchase price of subsidiary companies over the fair value of their underlying
attributable net assets at the dates of acquisition is included in the consolidated balance sheet as
goodwill on consolidation. Goodwill is not amortised but write down will be made where, in the
opinion of the Directors, there has been a permanent diminution in its value.
(d) Associated companies
Associated companies are those companies in which the Group or the Company has a long term
equity interest of between 20% to 50% and where they can exercise significant influence through
Board representation.
Premium or discount on acquisition, which is the difference between the purchase consideration for
shares in the associated company and the share of net tangible assets at the date of acquisition, as
appropriate, is not amortised.
However, the premium on acquisition is written down where in the opinion of the Directors, there
has been a permanent diminution in value.
The Group equity accounts for its share of the post-acquisition results and reserves of associated
companies based on the latest audited or management accounts of the companies concerned made up
to 30 April 1998.