Page 115 - S P Setia Annual Report 2016

 

 

 

 

 

Page 115 - S P Setia Annual Report 2016
P. 115

S P Setia Berhad Group                                                                                113
          Annual Report 2016




                                                                               Notes To The Financial Statements

                                                                                  For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (c)   Significant accounting judgements and estimates (cont’d.)


                   (ii)   Key sources of estimation uncertainty (cont’d.)

                       Impairment of loans and receivables

                       The Group assesses at each reporting date whether there is any objective evidence that a financial asset is impaired. To
                       determine whether there is objective evidence of impairment, the Group considers factors such as the probability of
                       insolvency or significant financial difficulties of the debtors and default or significant delay in payments.

                       Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on
                       historical loss experience for assets with similar credit risk characteristics.

                       The carrying amounts of the Group’s and the Company’s trade and other receivables as at 31 December 2016 are disclosed
                       in Notes 9, 10, 14 and 15 to the financial statements.

                       Impairment of non-financial assets

                       The Group assesses whether there are any indicators of impairment for all non-financial assets at each reporting date. Non-
                       financial assets are tested for impairment when there are indicators that the carrying amounts may not be recoverable.
                       When value in use calculations are undertaken, management must estimate the expected future cash flows from the asset
                       or cash generating unit and choose a suitable discount rate in order to calculate the present value of those cash flows.

                       The carrying amounts of the Group’s non-financial assets as at 31 December 2016 are as disclosed in Notes 2, 3, 4, 5, 6, 7,
                       8, 12 and 16 to the financial statements.

                       Income taxes

                       Significant judgement is involved in determining the capital allowances and deductibility of certain expenses during the
                       estimation of the provision for income tax. There are certain transactions and computations for which the ultimate tax
                       determination is uncertain during the ordinary course of business.

                       The Group and the Company recognise liabilities for expected tax issues based on estimates of whether additional taxes
                       will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such
                       differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

                       The carrying amounts of the Group’s and the Company’s tax assets as at 31 December 2016 were RM129,464,000 and
                       RM9,030,000 (2015: RM73,203,000 and RM9,107,000), respectively.

                       The carrying amount of the Group’s tax liabilities as at 31 December 2016 was RM112,185,000 (2015: RM146,498,000).

                       Deferred tax assets

                       Deferred tax assets are recognised for all deductible temporary differences, unabsorbed capital allowances and unutilised
                       tax losses to the extent that it is probable that taxable profit will be available in future against which the deductible temporary
                       differences, capital allowances and tax losses can be utilised.

                       Significant management judgement is required to determine the amount of deferred tax assets that can be recognised,
                       based upon the likely timing and level of future taxable profits together with future tax planning strategies.

                       The carrying amount of the Group’s and the Company’s recognised and unrecognised deferred tax assets as at 31 December
                       2016 are disclosed in Note 11 to the financial statements.
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