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101
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d) Intangible assets (continued)
(i) Spectrum rights
The Group’s spectrum rights consist of telecommunications licences with allocated spectrum rights which were acquired
as part of a business combination and other spectrum rights. Spectrum rights that are considered to have an indefinite
economic useful life are not amortised but tested for impairment on an annual basis, and where an indication of impairment
exists. Spectrum rights that are considered to have a finite life are amortised on a straight line basis over the period of
expected benefit and assessed at each reporting date whether there is any indication of impairment exists.
See accounting policy Note 3(g)(i) on impairment of non-financial assets.
The estimated useful lives of the spectrum rights of the Group are as follows:
Telecommunications licences with allocated spectrum rights
Indefinite life
Other spectrum rights
4 years
Management assesses the indefinite economic useful life assumption applied to the acquired intangible assets annually.
(ii) Goodwill
Goodwill arises on the acquisition of subsidiaries and it represents the excess of the aggregation of the consideration
transferred for purchase of subsidiaries or businesses, the amount of any non-controlling interest in the acquiree and the
acquisition-date fair value of any previously held equity interest in the acquiree over the fair value of the net identifiable assets
acquired.
Goodwill is measured at cost less any accumulated impairment losses. Negative goodwill is recognised immediately in the
statement of profit or loss.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units (“CGUs”) for the purpose of impairment testing and is tested annually for
impairment or more frequently if events or changes in circumstances indicate that it might be impaired. See accounting policy
Note 3(g)(i) on impairment of non-financial assets. Each CGU or a group of CGUs represents the lowest level within the Group
at which goodwill is monitored for internal management purposes and which is expected to benefit from the synergies of the
combination.
(iii) Customer acquisition costs
Expenditures incurred in providing the customer a free or subsidised device including installation costs, provided the customer
signs a non-cancellable contract for a predetermined contractual period of one to two years, are capitalised as intangible
assets and amortised over the contractual period on a straight line method. Customer acquisition costs are assessed at each
reporting date whether there is any indication that the customer acquisition costs may be impaired. See accounting policy
Note 3(g)(i) on impairment of non-financial assets.
