Events 2005 - ChartNexus

Notes to the Financial Statements 31 December 2005
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
5.2 Basis of consolidation (Continued)
The difference between the purchase price and the fair value of the net assets of the subsidiary companies at the date of
acquisition is treated as goodwill or reserve on consolidation.
Minority interest is that part of the net results of operations and of net assets of a subsidiary company attributable to
interest which are not owned directly or indirectly by the Group.
Minority interest is measure at the minority’s proportion of the net assets of subsidiary companies at the date of
acquisition, and the minority’s share of changes in equity since the date of the acquisition.
Losses applicable to the minority in excess of the minority’s interest in the subsidiary company’s equity are allocated
against the interest of the Group except to the extent that the minority has a binding obligation and is able to make an
additional investment to cover the losses. When that subsidiary are attributed to the equity holders of the Company until
the minority’s share of losses previously absorbed by the equity holders of the Company has been recovered.
5.3 Property, plant and equipment and depreciation
The gross carrying amounts of property, plant and equipment are initially measured at cost. Land and buildings which have
been subsequently revalued, are stated at valuation less accumulated depreciation and accumulated impairment losses, if
any. All other property, plant and equipment are stated at cost or valuation less accumulated depreciation and accumulated
impairment losses, if any.
No depreciation is provided for freehold land, plant and building under construction and printing presses and ancillary
equipment under production. Leasehold land is amortised over the respective lease periods ranging from 72 to 888 years.
Depreciation on other property, plant and equipment is calculated on a straight line basis to write off the cost or valuation
of these assets over their estimated useful lives.
The principal annual rates of depreciation are as follows:
Leasehold land 72 years to 888 years
Buildings 30 years to 50 years
Plant and machinery 6.5% – 33.33%
Furniture, fittings and equipment 10% – 50%
Renovation 10%
Motor vehicles 20%
5.4 Intangible assets
5.4.1 Goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of the Group’s share of the fair value of net
assets of the subsidiary company at the date of acquisition.
STAR PUBLICATIONS
(MALAYSIA) BERHAD
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