Page 130 - S P Setia Annual Report 2016

 

 

 

 

 

Page 130 - S P Setia Annual Report 2016
P. 130

128   S P Setia Berhad Group
                Annual Report 2016




          Notes To The Financial Statements

          For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (x)   Income tax (cont’d.)


                   (ii)   Deferred tax (cont’d.)

                       Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused
                       tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
                       differences, and the carry forward of unused tax credits and unused tax losses can be utilised except:

                       -    where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition 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  deductible  temporary  differences  associated  with  investments  in  subsidiary  companies,  associated
                            companies and jointly controlled entities, deferred tax assets are recognised only to the extent that it is probable that
                            the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the
                            temporary differences can be utilised.

                       The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
                       longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
                       Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become
                       probable that future taxable profit will allow the deferred tax assets to be utilised.

                       Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is
                       realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the
                       reporting date.

                       Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets
                       against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

              (y)   Cash and cash equivalents

                   Cash and cash equivalents consist of cash and bank balances, short-term deposits with licensed banks, fixed income trust funds
                   and other licensed financial institutions, which are short term, highly liquid investments that are readily convertible to known
                   amounts of cash and which are subject to insignificant risk of changes in value.

                   For the purposes of the statements of cash flows, cash and cash equivalents are presented net of bank overdrafts and exclude
                   sinking fund, debt service reserve, escrow and revenue accounts pledged to secure banking facilities.

              (z)   Operating segments

                   Segment reporting in the financial statements is presented on the same basis as it is used by management internally for evaluating
                   operating segment performance and in deciding how to allocate resources to each operating segment. Operating segments
                   are distinguishable components of the Group that engage in business activities from which they may earn revenues and incur
                   expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An operating
                   segment’s results are reviewed regularly by the chief operating decision maker to decide how to allocate resources to the
                   segment and assess its performance, and for which discrete financial information is available.

                   Segment revenues, expenses, assets and liabilities are those amounts resulting from operating activities of a segment that are
                   directly attributable to the segment and a relevant portion that can be allocated on a reasonable basis to the segment.

                   Segment revenues, expenses, assets and liabilities are determined before intra-group balances and intra-group transactions
                   are eliminated as part of the consolidation process, except to the extent that such intra-group balances and transactions are
                   between group entities within a single segment.
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