Content2011 - PETRONAS Gas Berhad

Notes to the Financial Statements
31 MarCh 2011
2. Significant Accounting Policies (Continued)
152 petronas gas berhad (101671-h)
2.10 Impairment (Continued)
ii) Non-financial assets
The carrying amount of assets, other than inventories (refer Note 2.12), deferred tax assets (refer Note 2.15) and financial
assets (financial assets in this context exclude investments in subsidiary, associate and jointly controlled entity), are reviewed
at each reporting date to determine whether there is any indication of impairment. For certain classes of assets, the carrying
amount are reviewed more frequently if events or changes in circumstances indicate that the carrying value may be impaired,
as described in the respective assets’ accounting policies.
When indication of assets impairment exists, the asset’s recoverable amount is estimated. For goodwill and intangible assets that
have indefinite useful lives or that are not yet available for use, recoverable amount is estimated at each reporting date.
An impairment loss is recognised if the carrying amount of an asset or the cash-generating-unit to which it belongs exceeds
its recoverable amount. Impairment losses are recognised in the profit or loss, unless the asset is carried at a revalued amount,
in which case the impairment loss is recognised directly against any revaluation surplus for the asset to the extent that the
impairment loss does not exceed the amount in the revaluation surplus for that same asset.
A cash-generating-unit is the smallest identifiable asset group that generates cash flows that are largely independent from
other assets and groups. Impairment losses recognised in respect of cash-generating-units are allocated first to reduce the
carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the
unit on a pro-rata basis.
The recoverable amount is the greater of the asset’s fair value less cost to sell and its value in use. In assessing value in use,
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely
independent cash inflows, the recoverable amount is determined for the cash-generating-unit to which the asset belongs.
An impairment loss in respect of goodwill is not reversed in a subsequent period. In respect of other assets, impairment losses
are reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is
reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Reversals of impairment losses are credited to the profit or loss in the year in which the reversals are recognised, unless
it reverses an impairment loss on a revalued asset, in which case it is credited directly to revaluation surplus. Where an
impairment loss on the same revalued asset was previously recognised in the profit or loss, a reversal of that impairment loss
is also recognised in the profit or loss.