ACCOUNTABILITY 194 YINSON HOLDINGS BERHAD 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) (c) Income taxes The Group recognises assets and liabilities for expected tax issues based on estimates of whether additional taxes will be due. In measuring the provision for taxation and deferred taxation at the reporting date, the Group has applied judgements and estimates in relation to interpretation of tax legislations in arriving at the Group’s tax position. Judgements and estimates are based on the current tax legislation and best available information as at the reporting date. Significant estimation is involved in ascertaining the attribution of profits to the Netherlands head office and Brazil PE on an arm’s length basis based on appropriate guidelines and transfer pricing methodologies. Determining the Group’s provision for income taxes and deferred taxes involves judgement, as there may be transactions and calculations where the final tax determination is uncertain at the reporting date. If the final outcome differs from the initially estimated amounts, these discrepancies will affect the income tax and deferred tax provisions in the period when the determination is finalised. (d) Contract modification for FPSO Atlanta On 6 August 2025, Yinson Production Bouvardia B.V. (formerly known as AFPS B.V.) (“Bouvardia B.V.”), an indirect wholly-owned subsidiary of the Company, has successfully completed the buy-out of the project loan related to FPSO Atlanta from Brava Energia S.A. (“Brava”). At the time of completion of the transaction, the principal amount outstanding under the project loan was approximately USD408.8 million (equivalent to RM1,735 million), for which a total cash consideration of approximately USD255.5 million (equivalent to RM1,084 million) together with approximately USD1.9 million (equivalent to RM8 million) in accrued interest, was paid. The gain arising from the buyout of the project loan of USD153 million (equivalent to RM651 million) was accounted for as a change in transaction price in accordance with MFRS 15 “Revenue from Contracts with Customers”. The Group applied significant judgement in allocating the increased transaction price between the satisfied EPCIC performance obligation and the remaining unsatisfied performance obligations under the contract. This involves determining the extent to which the modification related to services already transferred to the customer versus future services, including enhancements to the operation and maintenance phase of the contract. The allocation of the transaction price directly affects the timing of revenue recognition, as amounts relating to satisfied performance obligations are recognised through a cumulative catch‑up adjustment, while the remaining amounts are recognised over time. Details are disclosed in Note 6(b)(iii) to the financial statements. (e) Impairment of non-financial assets The preparation of the Group’s financial statements requires management to make judgements, estimates and assumptions that affect the reported carrying amounts of assets and liabilities. The most significant area requiring the use of judgement and estimation relates to the assessment of impairment of non-financial assets, which arises from the differing business models of the Group’s Renewables and Green Technologies segments. (i) Impairment of solar plants classified as held for sale Following the classification of the assets and liabilities of the Bhadla and Nokh solar plants as a disposal group held for sale (Note 39), the Group measured the disposal group in accordance with MFRS 5 Non-current Assets Held for Sale and Discontinued Operations, being the lower of its carrying amount and fair value less costs to sell (“FVLCTS”). Based on the agreed low-case consideration under the binding term sheet, the fair value less costs to sell of the disposal group was assessed to be lower than its carrying amount, resulting in an impairment charge. The Group estimated the fair value of the disposal group based on the expected range of consideration outcomes under the binding term sheet, with the low-case scenario of approximately INR4.1 billion (approximately RM204 million) assessed to represent the best estimate of fair value as at 31 October 2025.
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