Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 71 Notes to the Financial Statements 31 December 2016 (cont’d) 6. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of the Group’s financial statements requiresmanagement tomake judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates that could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. The following is a key assumption concerning the future and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Impairment of product development costs The Group reviews the carrying amounts of product development costs as at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amount or value in use is estimated. Determining the value in use of product development costs requires the determination of future cash flows expected to be generated from the continued use, and ultimate disposition of such assets. Any resulting impairment loss could have a material adverse impact on the Group’s financial position and results of operations. Significant judgement is made in the estimation of the present value of future cash flows generated by product development costs, which involves uncertainties and is significantly affected by assumptions used and judgement made regarding estimates of future cash flows and discount rates. Changes in assumptions could significantly affect the results of the Group’s assessment for impairment of product development costs. Further details on assessment for impairment of product development costs are disclosed in Notes 8 to the financial statements. 7. PROPERTY, PLANT AND EQUIPMENT 2016 Group Balance as at 1.1.2016 Additions Disposal of subsidiaries (Note 33) Written off Disposals Balance as at 31.12.2016 RM RM RM RM RM RM Cost Buildings 12,805,605 - - - - 12,805,605 Freehold land 382,284 - - - - 382,284 Long term leasehold land 2,030,000 - - - - 2,030,000 Furniture and fittings 354,751 4,596 (8,877) - - 350,470 Motor vehicles 994,948 57,147 - - (47,673) 1,004,422 Computers and software 5,705,147 91,715 (251,717) (616,417) (16,357) 4,912,371 Office equipment 261,172 9,498 (9,366) - - 261,304 Renovation 919,787 7,500 - - - 927,287 23,453,694 170,456 (269,960) (616,417) (64,030) 22,673,743