Page 129 - S P Setia Annual Report 2016
P. 129

S P Setia Berhad Group                                                                                127
          Annual Report 2016




                                                                               Notes To The Financial Statements

                                                                                  For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (v)   Borrowing costs


                   Borrowing costs incurred on assets under development that take a substantial period of time for completion are capitalised into
                   the carrying value of the assets. Capitalisation of borrowing costs ceases when that assets are completed or during extended
                   periods when active development is interrupted.

                   All other borrowing costs are charged to profit or loss in the period in which they are incurred.
              (w)  Provisions

                   Provisions are recognised when the Group and the Company have a present obligation (legal or constructive) as a result of a
                   past event, it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the
                   obligation can be estimated reliably.

                   Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable that an
                   outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value
                   of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to
                   the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as finance cost.

              (x)   Income tax

                   (i)   Current tax

                       Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
                       authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by
                       the reporting date.

                       Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or
                       loss, either in other comprehensive income or directly in equity.

                   (ii)   Deferred tax

                       Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of
                       assets and liabilities and their carrying amounts for financial reporting purposes.

                       Deferred tax liabilities are recognised for all temporary differences, except:

                       -    where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
                            that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
                            profit or loss; and

                       -    in respect of taxable temporary differences associated with investments in subsidiary companies, associated
                            companies and jointly controlled entities, where the timing of the reversal of the temporary differences can be
                            controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
   124   125   126   127   128   129   130   131   132   133   134