Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 148 13 GOODWILL AND OTHER INTANGIBLE ASSETS (CONTINUED) Sensitivity The recoverable amount of CGU A and CGU B is estimated to exceed the carrying amount at 31 December 2017 and 31 December 2016. The recoverable amount of CGU A would equal its carrying amount if the key assumptions were to change as disclosed below. 2017 2016 From To From To CGU A Revenue growth rate for 5 years 5.0% (7.0%) 3.7% 0.8% Pre-tax discount rate 19.4% 21.5% 19.0% 23.2% Growth rate for terminal value 2.0% (1.7%) 0% (5.1%) The recoverable amount of CGU B is not sensitive to the changes in the key assumptions. 14 DEFERRED TAX ASSETS/(LIABILITIES) 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 taxes relate to the same tax authority. The following amounts, determined after appropriate offsetting, are shown in the statements of financial position: Group Company 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 Deferred tax assets 41,724 24,525 2,062 2,175 Deferred tax liabilities (13,128) (19,399) - - 28,596 5,126 2,062 2,175 At 1 January 5,126 (7,373) 2,175 1,029 Credited/(Charged to) to profit or loss (Note 35): - Unused tax losses 14,087 3,814 - - - Property, plant and equipment 23,343 5,869 17 8 - Provisions and accruals (14,486) 9,051 (130) 1,138 - Incentives - (1,982) - - - Unrealised foreign exchange 1,320 (3,348) - - - Others 669 233 - - 24,933 13,637 (113) 1,146 Effect of exchange rate changes (1,463) (1,138) - - At 31 December 28,596 5,126 2,062 2,175