NOTES TO THE FINANCIAL STATEMENTS
For The Financial Period From 1 January 2014 To 31 March 2015 (Cont’d)
75
Datasonic Group Berhad
(Company No. 809759-X)
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.17 INCOME TAXES(CONT’D)
Deferred tax assets are recognised for all deductible temporary differences, unused tax losses
and unused tax credits to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences, unused tax losses and unused tax credits
can be utilised. The carrying amounts of deferred tax assets are reviewed at the end of each
financial year and reduced to the extent that it is no longer probable that sufficient future
taxable profits will be available to allow all or part of the deferred tax assets to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the period when the asset is realised or the liability is settled, based on the tax rates that have
been enacted or substantively enacted at the end of the financial year.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when the deferred income taxes relate to
the same taxation authority.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation to the underlying transactions either in other
comprehensive income or directly in equity and deferred tax arising froma business combination
is included in the resulting goodwill or excess of the acquirer’s interest in the net fair value of the
acquiree’s identifiable assets, liabilities and contingent liabilities over the business combination
costs.
4.18 EMPLOYEE BENEFITS
(a) Short-term Benefits
Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are
measured on an undiscounted basis and are recognised in profit or loss and included in
the development expenditures, where appropriate, in the period in which the associated
services are rendered by employees of the Group.
(b) Defined Contribution Plans
The Group’s contributions to defined contribution plans are recognised in profit or loss and
included in the development expenditures, where appropriate, in the period to which
they relate. Once the contributions have been paid, the Group has no further liability in
respect of the defined contribution plans.
4.19 CONTINGENT LIABILITIES
A contingent liability is a possible obligation that arises from past events and whose existence
will only be confirmed by the occurrence of one or more uncertain future events not wholly
within the control of the Group. It can also be a present obligation arising from past events
that is not recognised because it is not probable that an outflow of economic resources will
be required or the amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the financial statements.
When a change in the probability of an outflow occurs so that the outflow is probable, it will
then be recognised as a provision.
