Page 55 - ar2012

51 Annual Report 2012
2 Signifcant Accounting Policies (cont’d)
(r) Income Taxes (cont’d)
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that suffcient taxable proft will be available to allow all or part of the
deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each balance sheet
date and are recognised to the extent that it has become probable that future taxable proft will allow the
deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted
or substantively enacted at the balance sheet date.
(s) Employee Benefts
Obligations for contributions to defned contribution retirement beneft plans are recognised as an expense
in proft or loss as and when they are incurred. Contributions made to government managed retirement
beneft plan such as the Central Provident Fund which specifes the employer’s obligations are dealt with as
defned contribution retirement beneft plans.
(t) Equity Instruments
Equity instruments areclassifedas equity inaccordancewith the substanceof thecontractual arrangements.
Share Capital
Ordinary shares are classifed as equity. Incremental costs directly attributable to the issuance of new
ordinary shares are deducted against the share capital account.
(u) Segment Reporting
A business segment is a distinguishable component of the Group engaged in providing products or services
that are subject to risks and returns that are different from those of other business segments. A geographical
segment is a distinguishable component of the Group engaged in providing products or services within a
particular economic environment that is subject to risks and returns that are different from those of segments
operating in other economic environments.
Operating segments are reported in a manner consistent with the internal reporting provided to the
executive committee whose members are responsible for allocating resources and assessing performance
of the operating segments.
3 Critical Accounting Estimates, Assumptions and Judgements
Estimates, assumptions concerning the future and judgements are made in the preparation of the fnancial
statements. They affect the application of the Group’s accounting policies, reported amounts of assets,
liabilities, income and expenses, and disclosure made. They are assessed on an on-going basis and are based
on experience and relevant factors, including expectations of future events that are believed to be reasonable
under the circumstances.
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance
sheet date, that have a signifcant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next fnancial year are discussed below.
(i) Critical accounting estimates and assumptions
Estimated Useful Life of Property, Plant & Equipment
Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. The
Group’s management estimates the useful lives of these property, plant and equipment to be within 3 to
57 years. This estimate is based on the historical experience of the actual useful lives of property, plant and
equipment of a similar nature and function. Management will increase the depreciation charge where
Notes to the Financial Statements
30 September 2012