96 / 168
Datasonic Group Berhad
(Company No. 809759-X)
94
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.17 INCOME TAXES (Cont’d)
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 taxes relate to the same
taxable entity and 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 from a business
combination is adjusted against 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.
4.20 OPERATING SEGMENTS
An operating segment is a component of the Group that engages in business activities from
which it 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 operating
results are reviewed regularly by the chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its performance, and for which discrete
financial information is available.