25
MIGHT Directors’ Report And Audited Financial Statements 2020
6. INVESTMENT IN AN ASSOCIATE
GROUP
2020 RM
2019 RM
Unquoted equity shares, at cost Share of post-acquisition losses
15,100,000 (5,198,362)
15,100,000 (5,198,362)
9,901,638 (9,901,638) -
9,901,638 (9,901,638) -
Less: Impairment losses in investment of an associate
Investment in an associate is measured at cost less impairment losses, if any, and accounted for using the equity method in the consolidated financial statements.
(a)
Management reviews the investment in an associate for impairment when there is an indication of impairment.
The recoverable amount of the investment in an associate is assessed by reference to the higher of the fair values less cost to sell and value in use of the associate.
Estimating a value in use requires management to make an estimate of the expected future cashflows to be derived from continuing use of the asset and from its ultimate disposal, expectations about possible variations in the amount, timing of those cash flows, the time value of money, price for inherent uncertainty risk and others relevant factors.
(b)
Details of the associate is as follows:
INTEREST IN EQUITY HELD BY GROUP
COUNTRY OF INCORPORATION
NAME OF COMPANY
PRINCIPAL ACTIVITIES
2020
2019
Associate of VentureTECH Sdn. Bhd.
Malaysia
40%
40%
MYBiomass Sdn. Bhd.
Developing and pioneering high value green chemicals biorefinery although a coordinated aggregation. The Company has ceased its operations in prior year.
The above investment is accounted for as investment in an associate by virtue of the Group’s ability to exercise significant influence over the financial and operating policies of the investee companies through representation in the Board of Directors of the associate.
The Group’s share of results of an associate is based on the latest available audited financial statements.
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