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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
Basis of Consolidation (Cont’d)
(d) Loss of Control (Cont’d)
Amounts previously recognised in other comprehensive income in relation to the former subsidiary are accounted
for in the same manner as would be required if the relevant assets or liabilities were disposed of (i.e. reclassified
to profit or loss or transferred directly to retained profits). The fair value of any investments retained in the former
subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent
accounting under MFRS 139 or, when applicable, the cost on initial recognition of an investment in an associate
or a joint venture.
Intangible Assets
Intangible assets, other than goodwill, that are acquired by the Group, which have finite useful lives, are measured at
cost less any accumulated amortisation and any impairment losses.
Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on
a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use.
Amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted,
if appropriate.
Goodwill
Goodwill is measured at cost less accumulated impairment losses, if any. The carrying value of goodwill is reviewed for
impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount may be
impaired. The impairment value of goodwill is recognised immediately in profit or loss. An impairment loss recognised
for goodwill is not reversed in a subsequent period.
Under the acquisition method, any excess of the sum of the fair value of the consideration transferred in the business
combination, the amount of non-controlling interests recognised and the fair value of the Group’s previously held equity
interest in the acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities at the date of
acquisition is recorded as goodwill.
Where the latter amount exceeds the former, after reassessment, the excess represents a bargain purchase gain and is
recognised as a gain in profit or loss.
Functional and Foreign Currencies
(i)
Functional and presentation currency
The individual financial statements of each entity in the Group are presented in the currency of the primary
economic environment in which the entity operates, which is the functional currency.
The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional
and presentation currency.
(ii) Transactions and balances
Transactions in foreign currencies are converted into the respective functional currencies on initial recognition,
using the exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities at
the end of the reporting period are translated at the rates ruling as of that date. Non-monetary assets and liabilities
are translated using exchange rates that existed when the values were determined. All exchange differences are
recognised in profit or loss.
Notes To The Financial Statements
(cont’d)