KUMPULAN FIMA ANNUAL REPORT 2019

Notes to the

Financial Statements

As at 31 March 2019

Significant accounting policies (cont’d.)

2.3 Summary of significant accounting policies (cont’d.)

(k) Income taxes (cont’d.)

(i) Current tax (cont’d.)

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 provided using the liability method on temporary differences at the reporting

date between the tax bases of assets and liabilities and their carrying amounts for financial

reporting purposes.

Deferred tax liabilities are recognised for all temporary differences, except:

where the deferred tax liability arises from the initial recognition of goodwill or of an

asset or liability in a transaction that is not a business combination and, at the time of the

transaction, affects neither the accounting profit nor taxable profit or loss; and

in respect of taxable temporary differences associated with investments in subsidiary

companies, associated companies and interests in joint ventures, where the timing of

the reversal of the temporary differences can be controlled and it is probable that the

temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carry forward of

unused tax credits and unused tax losses, to the extent that it is probable that taxable profit

will be available against which the deductible temporary differences, and the carry forward of

unused tax credits and unused tax losses can be utilised except:

where the deferred tax asset relating to the deductible temporary difference arises from the

initial recognition of an asset or liability in a transaction that is not a business combination

and, at the time of the transaction, affects neither the accounting profit nor taxable profit

or loss; and

in respect of deductible temporary differences associated with investments in subsidiary

companies, associated companies and interests in joint ventures, deferred tax assets are

recognised only to the extent that it is probable that the temporary differences will reverse

in the foreseeable future and taxable profit will be available against which the temporary

differences can be utilised.

Kumpulan Fima Berhad

(11817-V)

Annual Report 2019

136