83 / 168
Datasonic Group Berhad
(Company No. 809759-X)
81
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
3.
BASIS OF PREPARATION (CONT’D)
3.2 BASIS OF CONSOLIDATION (CONT’D)
(e) Loss of Control
Upon the loss of control of a subsidiary, the Group recognises any gain or loss on disposal
in profit or loss which is calculated as the difference between:-
(i) the aggregate of the fair value of the consideration received and the fair value of
any retained interest in the former subsidiary; and
(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the
former subsidiary and any non-controlling interests.
Amounts previously recognised in other comprehensive income in relation to the former
subsidiary are accounted for in the same manner as would be required if the relevant
assets or liabilities were disposed of (i.e. reclassified to profit or loss or transferred directly to
retained profits). The fair value of any investments retained in the former subsidiary at the
date when control is lost is regarded as the fair value on initial recognition for subsequent
accounting under MFRS 139 or, when applicable, the cost on initial recognition of an
investment in an associate or a jointly venture.
4.
SIGNIFICANT ACCOUNTING POLICIES
4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated by the directors and management and
are based on historical experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. The estimates and judgements
that affect the application of the Group’s accounting policies and disclosures, and have a
significant risk of causing a material adjustment to the carrying amounts of assets, liabilities,
income and expenses are discussed below:-
(a) Depreciation of Property, Plant and Equipment
The estimates for the residual values, useful lives and related depreciation charges for the
property, plant and equipment are based on commercial factors which could change
significantly as a result of technical innovations and competitors’ actions in response to
the market conditions. The Group anticipates that the residual values of its property, plant
and equipment will be insignificant. As a result, residual values are not being taken into
consideration for the computation of the depreciable amount. Changes in the expected
level of usage and technological development could impact the economic useful lives
and the residual values of these assets, therefore future depreciation charges could be
revised.
(b) Income Taxes
There are certain transactions and computations for which the ultimate tax determination
may be different from the initial estimate. The Group recognises tax liabilities based on its
understanding of the prevailing tax laws and estimates of whether such taxes will be due
in the ordinary course of business. Where the final outcome of these matters is different
from the amounts that were initially recognised, such difference will impact the income
tax expense and deferred tax balances in the year in which such determination is made.