4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
e) Income Taxes
(i) Current tax
Current tax assets and liabilities are measured at the amount expected to be 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 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 recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used
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 and unused tax credits to
the extent that it is probable that taxable profit will be available against which those
deductible temporary differences, unused tax losses and carry forward of unused
tax credits can be utilised. Such deferred tax assets and liabilities are not recognised
if the temporary difference arises from goodwill 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 in subsidiaries and associates, and interests in joint ventures, except
where the Group 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 tax effects of unutilised reinvestment allowances are only recognised upon actual
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
profits will be available to allow all or part of the asset to be recovered.
Asia Media Group Berhad Annual Report 2014
85
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
