Page 153 - KWAP_AR2022

FoR BetteR RetuRns Annual Report 2022 151

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.4 Investments In Associates And Joint Ventures (continued)

Loss of significant influence or joint control

When the group ceases to equity account its associates or joint ventures because of the loss of significant
influence or joint control, the retained interest in the entity is remeasured to its fair value with the change in
carrying amount recognised in profit or loss, if any. this fair value becomes the initial carrying amount for the
purpose of subsequent accounting of the retained interest as a financial asset. in addition, any amount previously
recognised in other comprehensive income in respect of the entity is accounted for as a direct disposal of the
related assets or liabilities by the group. this may result in the reclassification of amounts previously recognised
in other comprehensive income to profit or loss.
if there is a reduction of the ownership interest in the associates or joint ventures but the significant influence or
joint control is retained, only a proportionate share of the amounts previously recognised in other comprehensive
income is reclassified to profit or loss, where appropriate.

dilution of gains or losses arising from investments in associates or joint ventures is recognised in profit or loss.
Investments in associates and joint ventures in separate Financial Statements

in KWap’s separate financial statements, investments in associates and joint ventures are carried at cost less
accumulated impairment losses, if any. upon the disposal of investments in associates and joint ventures,
the difference between the disposal proceeds and the carrying amounts of the investments is recognised
in profit or loss.

2.5 Intangible Assets

intangible assets acquired separately are initially measured at cost. following the initial recognition, intangible
assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. the useful
lives of intangible assets are assessed to be either finite or indefinite. intangible assets with finite useful lives are
amortised on a straight-line basis over the estimated economic useful lives and assessed for impairment upon
indication that the intangible asset may be impaired, when necessary. the amortisation period and amortisation
method for intangible assets with finite useful lives are reviewed at each reporting date.

changes in the expected useful lives or the expected pattern of consumption of the future economic benefits
embodied in the asset are recognised by changing the amortisation period or method, as appropriate, and are
treated as changes in accounting estimates. the amortisation expense of intangible assets with finite useful lives
is recognised in profit or loss.

intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually, or
more frequently, upon indication that the carrying value may be impaired either individually or at the cash-
generating unit (cgu) level. amortisation of the said intangible assets is not required. the useful lives of intangible
assets with indefinite useful lives are reviewed annually to determine the feasibility of the useful life assessment.
in the event it is no longer feasible to support the useful life, the change in the useful life from indefinite to finite
is executed on a prospective basis.