Page 125 - S P Setia Annual Report 2016
P. 125

S P Setia Berhad Group                                                                                123
          Annual Report 2016




                                                                               Notes To The Financial Statements

                                                                                  For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (p)   Impairment of assets (cont’d.)


                   (iii)   Property, plant and equipment, investment properties, intangible asset, land held for property development and investments
                       in subsidiary companies, associated companies and jointly controlled entities

                       Property, plant and equipment, investment properties, intangible asset, land held for property development and investments
                       in  subsidiary  companies,  associated  companies  and  jointly  controlled  entities  are  assessed  at  each  reporting  date  to
                       determine whether there is any indication of impairment.

                       If such an indication exists, the asset’s recoverable amount is estimated. The recoverable amount is the higher of an
                       asset’s fair value less cost to sell and its value in use. Value in use is the present value of the future cash flows expected to
                       be derived from the asset. Recoverable amounts are estimated for individual assets or, if it is not possible, for the cash-
                       generating unit to which the asset belongs.

                       An impairment loss is recognised whenever the carrying amount of an asset or a cash-generating unit exceeds its
                       recoverable amount. Impairment losses are charged to profit or loss immediately.

                       Any reversal of an impairment loss as a result of a subsequent increase in recoverable amount should not exceed the
                       carrying amount that would have been determined (net of amortisation or depreciation, if applicable) had no impairment
                       loss been previously recognised for the asset. Such reversals are recognised as income immediately in profit or loss.

              (q)   Share capital, Islamic redeemable cumulative preference shares (“RCPS-i”) and Sukuk Musharakah (“Perpetual bond”)

                   Ordinary shares, RCPS-i and Perpetual bond are classified as equity when there is no contractual obligation to deliver cash or
                   other financial assets to another person or entity or to exchange financial assets or liabilities with another person or entity that
                   are potentially unfavourable to the issuer.

                   Ordinary shares and RCPS-i are recorded at nominal value and proceeds received in excess, if any, of the nominal value of shares
                   issued, are accounted for as share premium. Share premium are classified as equity. Costs incurred directly attributable to the
                   issuance of the shares are accounted for as a deduction from share premium, if any, otherwise it is charged to profit or loss.

                   The proceeds received net of any directly attributable transaction costs are credited to share capital or perpetual capital securities.

                   Dividends on ordinary shares and RCPS-i as well as distribution on Perpetual bond are recognised in equity in the period in which
                   they are declared.

              (r)   Redeemable cumulative preference shares

                   Redeemable cumulative preference shares (“RCPS”) are classified as financial liabilities in accordance with the substance of the
                   contractual arrangement of the RCPS. Dividends to shareholders of the RCPS are recognised as finance costs, on an accrual basis.

                   RCPS are measured at amortised cost.

              (s)   Income recognition

                   Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the Company,
                   and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of
                   consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.
   120   121   122   123   124   125   126   127   128   129   130