NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONT'D) (h) Taxes (Cont'd) Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle the current tax assets and current tax liabilities on a net basis. (i) Property, plant and equipment (i) Recognition and measurement All items of property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any, except for long-term leasehold land, freehold land and buildings. Freehold land stated at valuation, which is the fair value at the date of valuation, less impairment loss, if any. Long-term leasehold land and buildings are stated at valuation, which is the fair value at the date of the valuation, less accumulated depreciation and impairment loss, if any. The Group revalues its land and building every five years from the last date of valuation or at shorter intervals whenever the fair values of the said assets is expected to differ substantially from their carrying amounts. Surplus arising from revaluation are transferred to revaluation reserve. Any deficits are offset against the previously recognised revaluation surplus to the extent of a previous increase for the same property and the balance is thereafter recognised in profit or loss. Upon disposal or retirement of an asset, any unutilised revaluation reserve relating to the particular asset is transferred to retained earnings. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. (ii) S ubsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of an item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The cost of the day-to-day servicing of the property, plant and equipment are recognised in profit or loss as incurred. 6 Financial Insights Through Numbers 1 3 5 2 4 7 PG | 189 ANNUAL REPORT 2025 MKH BERHAD
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