ANNUAL REPORT 2016
57
Techno
Dex
Berhad
(627634-A)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.12 INCOME TAXES (continued)
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
when the asset is realised or the liability is settled, based on the tax rates that have been enacted or
substantively enacted at the end of the reporting period.
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 the deferred income taxes relate to the same taxation
authority.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred
tax items are recognised in correlation to the underlying transactions either in other comprehensive income
or directly in equity and deferred tax arising from a business combination is included in the resulting goodwill
or excess of the acquirer’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and
contingent liabilities over the business combination costs.
4.13 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, deposits pledged with
financial institutions, bank overdrafts and short-term, highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value with original
maturities period three months or less.
4.14 PROVISIONS
Provisions are recognised when the Group has a present obligation as a result of past events, when it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
and when a reliable estimate of the amount can be made. Provisions are reviewed at the end of each
reporting period and adjusted to reflect the current best estimate. Where the effect of the time value of
money is material, the provision is the present value of the estimated expenditure required to settle the
obligation. The unwinding of the discount is recognised as interest expense in profit or loss.
4.15 EMPLOYEE BENEFITS
(a) Short-term Benefits
Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are measured
on an undiscounted basis and are recognised in profit or loss in the period in which the associated
services are rendered by employees of the Group.
(b) Defined Contribution Plans
The Group’s contributions to defined contribution plans are recognised in profit or loss in the period to
which they relate. Once the contributions have been paid, the Group has no further liability in respect
of the defined contribution plans.
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
