ANNUAL REPORT
2016
.63
NOTES TO THE
FINANCIAL STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION (CONT＊D)
2A.
Significant accounting policies (cont＊d)
Income tax
The income taxes are accounted using the asset and liability method that requires the recognition of taxes payable
or refundable for the current year and deferred tax liabilities and assets for the future tax consequence of events
that have been recognised in the financial statements or tax returns. The measurements of current and deferred
tax liabilities and assets are based on provisions of the enacted or substantially enacted tax laws; the effects of
future changes in tax laws or rates are not anticipated. Tax expense (tax income) is the aggregate amount included
in the determination of profit or loss for the reporting year in respect of current tax and deferred tax. Current and
deferred income taxes are recognised as income or as an expense in profit or loss unless the tax relates to items
that are recognised in the same or a different period outside profit or loss. For such items recognised outside profit
or loss the current tax and deferred tax are recognised (a) in other comprehensive income if the tax is related to an
item recognised in other comprehensive income and (b) directly in equity if the tax is related to an item recognised
directly in equity.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same income tax authority.
The carrying amount of deferred tax assets is reviewed at each end of the reporting year and is reduced, if necessary,
by the amount of any tax benefits that, based on available evidence, are not expected to be realised. A deferred tax
amount is recognised for all temporary differences, unless the deferred tax amount arises from the initial recognition
of an asset or liability in a transaction which (i) is not a business combination; and (ii) at the time of the transaction,
affects neither accounting profit nor taxable profit (tax loss).
Property, plant and equipment
Depreciation is provided on a straight-line basis to allocate the gross carrying amounts of the assets less their residual
values over their estimated useful lives of each part of an item of these assets. The annual rates of depreciation are
as follows:
Plant and Equipment
每
10 to 33%
Motor vehicles
每
20%
Renovations
每
20%
Construction in progress
每
Not depreciated
An asset is depreciated when it is available for use until it is derecognised even if during that period the item is idle.
Fully depreciated assets still in use are retained in the financial statements.
Property, plant and equipment are carried at cost on initial recognition and after initial recognition at cost less any
accumulated depreciation and any accumulated impairment losses. The gain or loss arising from the derecognition
of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if
any, and the carrying amount of the item and is recognised in profit or loss. The residual value and the useful life of
an asset is reviewed at least at the end of the reporting year and, if expectations differ significantly from previous
estimates, the changes are accounted for as a change in an accounting estimate, and the depreciation charge for
the current and future periods are adjusted.
