78
ASIAMEDIAGROUPBERHAD
(813137-V)
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
e) IncomeTaxes
(i) Current tax
Current taxassetsand liabilitiesaremeasuredat theamountexpected tobe recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute
the amount are those that are enacted or substantially enacted by the financial year
end.
Current taxesare recognised inprofit or loss, except to theextent 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 recognisedon temporarydifferencesbetween thecarryingamountsof
assetsand liabilities in thefinancial statementsand thecorresponding taxbasesused
in the computation of taxable profit. Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary differences, unused tax losses andunused tax credits to
the extent that it is probable that taxable profit will be available against which those
deductible temporarydifferences, unused tax lossesand carry forwardof unused tax
credits can be utilised. Such deferred tax assets and liabilities are not recognised if
the temporarydifferencearises fromgoodwill or from the initial recognition (other than
in a business combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences associated
with investments insubsidiariesandassociates,and interests in joint ventures,except
where theGroup is able to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with
such investments and interests are only recognised to the extent that it is probable
that there will be sufficient taxable profits against which to utilise the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.
The taxeffectsof unutilised reinvestment allowancesareonly recogniseduponactual
realisation.
The carrying amount of deferred tax assets is reviewed at the end of each reporting
period and reduced to the extent that it is no longer probable that sufficient taxable
profitswill be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities aremeasured at the tax rates that are expected to
apply in the period inwhich the liability is settled or the asset realised, based on tax
rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period. Themeasurement of deferred tax liabilities and assets reflects
the tax consequences that would follow from themanner inwhich theGroupand the
Company expect, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.
Deferred taxassetsand liabilitiesareoffsetwhen there isa legallyenforceable right to
set off current taxassetsagainst current tax liabilitiesandwhen they relate to income
taxes levied by the same taxation authority and theGroup and theCompany intend
to settle its current tax assets and liabilities on a net basis.
