2. Summary of material accounting policies (cont’d.) 2.17 Income tax (i) Current tax Current tax assets and liabiliঞes are measured at the amount expected to be recovered from or paid to the taxaঞon authoriঞes. The tax rates and tax laws used to compute the amount are those that are enacted or substanঞvely enacted by the reporঞng date. Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss, either in other comprehensive income or directly in equity. (ii) Deferred tax Deferred tax is provided using the liability method on temporary differences at the reporঞng date between the tax bases of assets and liabiliঞes and their carrying amounts for financial reporঞng purposes, based on at the tax rates that are expected to apply to the year when the asset is realised or the liability is seled, based on tax rates and tax laws that have been enacted or substanঞvely enacted at the reporঞng date. Deferred tax assets and deferred tax liabiliঞes are offset, if a legally enforceable right exists to set off current tax assets against current tax liabiliঞes and the deferred taxes relate to the same taxable enঞty and the same taxaঞon authority. 2.18 Fair value measurement The Group measures financial instruments, such as quoted and unquoted securiঞes and non-financial assets such as investment properঞes at fair value at each reporঞng date. The Group’s management determines the policies and procedures for both recurring and non-recurring fair value measurement. External valuers are involved for valuaঞon of significant assets, such as investment properঞes. Involvement of external valuers is decided upon annually by the management. Selecঞon criteria of external valuers include market knowledge, reputaঞon, independence and whether professional standards are maintained. The management decides, a[er discussions with the Group’s external valuers, which valuaঞon techniques and inputs to use for each case. At each reporঞng date, the management analyses the movement in the values of assets and liabiliঞes which are required to be re-measured or re-assessed as per the Group’s accounঞng policies. For this analysis, the management verifies the major inputs applied in the latest valuaঞon by agreeing the informaঞon in the valuaঞon computaঞon to contracts and other relevant documents. For the purpose of fair value disclosures, the Group has determined classes of assets and liabiliঞes on the basis of the nature, characterisঞcs and risks of the asset or liability and the level of the fair value hierarchy. 2.19 Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances, short-term deposits with licensed banks and other financial insঞtuঞons which are short-term, highly liquid investments that are readily converঞble to known amounts of cash and which are subject to insignificant risk of changes in value and for operaঞonal purposes. For the purposes of the statements of cash flows, cash and cash equivalents consist of cash, short-term deposits, and short term investment fund, as defined above as they are considered an integral part of the Group's cash management. notes to the financial statements 31 march 2025 (cont’d.) 173 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 07 FINANCIAL STATEMENTS
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