Maxis Berhad
Annual Report 2014
104
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f) Financial instruments (continued)
(iii) Derecognition of financial assets and financial liabilities
Financial assets are derecognised when the risks and rewards relating to the financial assets have expired or have been fully
transferred or have been partially transferred with no control over the same.
Financial liabilities are derecognised when the liability is either discharged, cancelled, has expired or has been restructured
with substantially different terms.
(iv) Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position when there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the
asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy.
(g) Impairment of assets
(i) Non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that
have a finite economic useful life are subject to amortisation and are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by
which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s
fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (CGUs). Non-financial assets other than goodwill that suffered
impairment are reviewed for possible reversal of the impairment at each reporting date.
Any impairment loss is charged to the statement of profit or loss. Impairment losses on goodwill are not reversed. In respect
of other assets, any subsequent increase in recoverable amount is recognised in the statement of profit or loss to the extent
that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation
and amortisation, if no impairment loss had been recognised.
(ii) Financial assets
Financial assets carried at amortised cost
Financial assets are impaired when there is objective evidence as a result of one or more events that the present value of
estimated discounted future cash flows is lower than the carrying value. Any impairment losses are recognised immediately
in the statement of profit or loss.
