Kimlun Corporation Berhad Annual Report 2017

Annual Report 2017 87 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 3. Significant accounting judgements and estimates (cont’d) 3.2 Key sources of estimation uncertainty (cont’d) (c) Income taxes Judgement is involved in determining the Group’s and the Company’s provision for income taxes as there are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group and the Company recognised liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matter is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (d) Impairment of loans and receivables The Group and the Company assess at each reporting date whether there is any objective evidence that a financial asset is impaired. To determine whether there is objective evidence of impairment, the Group and the Company consider factor such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. When there is objective evidence of impairment, the amount and the timing of future cash flows are estimated based on historical loss experience for assets with similar credit risk characteristics. The carrying amount of the Group’s and of the Company’s loans and receivables at the reporting date is disclosed in Note 20. (e) Deferred tax assets Deferred tax assets are recognised for all unused tax credit to the extent that it is probable that taxable profit will be available against which the investment allowances and capital allowances can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. 4. Revenue Group Company 2017 2016 2017 2016 RM RM RM RM Sales of goods 97,965,729 178,208,149 - - Sales of properties 15,829,456 6,567,490 - - Construction revenue 871,096,494 755,827,825 - - Dividend income from subsidiaries - - 19,234,000 12,882,000 Interest income from subsidiaries - - 1,862,157 2,170,454 Interest income from fixed deposits 297,944 73,789 297,944 73,789 985,189,623 940,677,253 21,394,101 15,126,243