ANNUAL REPORT 2016
55
Techno
Dex
Berhad
(627634-A)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.9 INTANGIBLE ASSETS
An intangible asset shall be recognised if, and only if it is probable that the expected future economic
benefits that are attributable to the asset will flow to the entity and that the cost of the asset can be measured
reliably. An entity shall assess the probability of the expected future economic benefits using reasonable and
supportable assumptions that represent management’s best estimate of the set of economic conditions
that will exist over the useful life of the asset. An intangible asset shall be measured initially at cost.
The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangible assets with finite lives are amortised over their useful economic lives and assessed for impairment
whenever there is an indication that the intangible assets may be impaired. The amortisation period and
the amortisation method for an intangible asset with a finite useful life is reviewed annually. Changes in
the expected useful life or the expected pattern of consumption of future economic benefits embodied
in the asset is accounted for by changing the amortisation period or method, as appropriate, and treated
as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is
recognised in the profit or loss in the expense category consistent with the function of the intangible
asset.
Intangible assets that have been capitalised are amortised on a straight line basis over the period of their
expected benefit, but not exceeding 5 years begin from the period when the intangible assets are available
for use.
Intangible assets with indefinite useful lives are tested for impairment annually either individually or at
the cash generating unit level. Such intangible are not amortised. The useful life of an intangible asset
with an indefinite life is reviewed annually to determine whether indefinite life assessment continues to be
supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective
basis.
4.10 IMPAIRMENT
(a) Impairment of Financial Assets
All financial assets (other than those categorised at fair value through profit or loss), are assessed at the
end of each reporting period whether there is any objective evidence of impairment as a result of one
or more events having an impact on the estimated future cash flows of the asset.
An impairment loss in respect of held-to-maturity investments and loans and receivables financial
assets is recognised in profit or loss and is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the financial asset’s original
effective interest rate.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed through profit or loss to the extent that the carrying amount of the financial
asset at the date the impairment is reversed does not exceed what the amortised cost would have
been had the impairment not been recognised.
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
