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106
WCT Berhad (66538-K)
annual report 2011
NOTES TO THE FINANCIAL STATEMENTS
31 December 2011
cont’d
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES cont’d
2.32 Revenue cont’d
(h) Hiring of machineries
Rental income from hiring of machineries is recognised on an accruals basis when the rights to receive
payments are established.
(i) Car park income
Car park income is recognised on an accruals basis upon completion of usage of car park spaces.
(j) Hotel income
2.33 Income taxes
Room income is recognised based on an accruals basis unless collection is in doubt, in which case it is
recognised based on receipt basis.
Revenue from the sales of food and beverage is recognised based on invoiced value of goods sold.
(a) Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the reporting date.
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.
(b) 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 subsidiaries, associates
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.