Maxis Berhad
Annual Report 2014
114
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(v) Government grants (continued)
Government grants relating to costs are deferred and recognised in the statement of profit or loss over the financial period
necessary to match them with the costs they are intended to compensate.
Government grants relating to the purchase of assets are included in payables and accruals as government grant and are credited
to the statement of profit or loss on a straight line basis over the expected useful lives of the related assets.
(w) Contingent liabilities
The Group does not recognise a contingent liability but discloses its existence in the financial statements. A contingent liability is
a possible obligation that arises from past events whose existence will be confirmed by the occurrence of one or more uncertain
future events beyond the control of the Group or a present obligation that is not recognised because it is not probable that an
outflow of resources will be required to settle the obligation. A contingent liability also arises in the extremely rare circumstance
where there is a liability that cannot be recognised because it cannot be measured reliably.
In the acquisition of subsidiaries by the Group under a business combination, the contingent liabilities assumed are measured
initially at their fair value at the acquisition date, irrespective of the extent of any non-controlling interests.
The Group recognises separately the contingent liabilities of the acquiree as part of allocating the cost of a business combination
where their fair values can be measured reliably. Where the fair values cannot be measured reliably, the resulting effect will be
reflected in the goodwill arising from the acquisition.
Subsequent to the initial recognition, the Group measures the contingent liabilities that are recognised separately at the date of
acquisition at the higher of the amount that would be recognised in accordance with the provisions of MFRS 137 and the amount
initially recognised less, when appropriate, cumulative amortisation recognised in accordance with MFRS 118.
(x) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
makers comprising the Chief Executive Officer and the Chief Financial and Strategy Officer. The chief operating decision-makers
are responsible for allocating resources, assessing performance of the operating segments and making strategic decisions.
During the financial year, the Group refined its operations and management reporting structure in providing integrated
telecommunication services to its customers. Consequently, segmental reporting is not presented as there are no reportable
segments as disclosed in Note 5 to the financial statements.
