4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
e) Income Taxes
(Cont’d)
(ii) Deferred tax
(Cont’d)
Deferred tax assets and liabilities are measured at the tax rates that are expected
to apply in the period in which the liability is settled or the asset is realised, based
on tax rates (and tax laws) that have been enacted or substantively enacted by the
end of the reporting period. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the manner in which the Group
and the Company expect, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
Deferred tax assets and 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 and the Company
intend to settle its current tax assets and liabilities on a net basis.
f)
Property, Plant and Equipment
All items of property, plant and equipment are initially recorded at cost. The cost of an item
of property, plant and equipment initially recognised includes its purchase price and any
cost that is directly attributable to bringing the asset to the location and condition necessary
for it to be capable of operating in the manner intended by management. Cost also include
borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Group and the cost of the item can be measured reliably. The
carrying amount of the replaced part is derecognised. All other repairs and maintenance
are charged to profit or loss during the financial period in which they are incurred.
Subsequent to recognition, property, plant and equipment are stated at cost less
accumulated depreciation and any accumulated impairment losses.
Asia Media Group Berhad Annual Report 2014
86
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
