2012 Annual Report - Media Prima Berhad

N
O
LEASES
(i)
(ii)
Finance leases
Leases of property, plant and equipment where the Group assumes substantially all the benefits and risks of
ownership are classified as finance leases.
Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased asset and
the present value of the minimum lease payments. Each lease payment is allocated between the liability and
finance charges so as to achieve a constant periodic rate of interest on the balance outstanding. The
corresponding rental obligations, net of finance charges, are included in payables. The interest element of the
finance lease is charged to the statement of comprehensive income over the lease period, so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each period.
Property, plant and equipment acquired under finance leases are depreciated over the estimated useful lives of
the assets, in accordance with the annual rates stated in Note F above. Where there is no reasonable certainty
that the ownership will be transferred to the Group, the asset is depreciated over the shorter of the lease term
and its estimated useful life.
Operating leases
Leases of assets where a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Payments made under operating leases are charged to the profit or loss on
a straight line basis over the period of the lease.
(iii) Prepaid lease rentals
Prepaid lease rentals for transmission stations are charged to the profit or loss on a straight line basis over the
respective period of the leases, ranging between 31 and 36 years.
CURRENT AND DEFERRED INCOME TAX
RADIO OUTDOOR
NETWORKS
The tax expense for the period comprises current and deferred tax. Tax is recognised in the net profit for the
financial year except to the extent that it relates to items recognised in other comprehensive income or directly in
equity. In this case, the tax is also recognised in other comprehensive income or directly in equity.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
statement of financial position date in the countries where the Company and its subsidiaries operate and generate
taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.
Deferred income tax is recognised in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is
not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction occurring, it affects neither accounting nor taxable profit nor loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the
statement of financial position date and are expected to apply when the related deferred income tax asset is realised
or the deferred income tax liability is settled.
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CREATION
NEW MEDIA
165
annual
report
2012
From Our Perspective Who We Are Our Strategy & Achievements Our Performance Our Responsibility Our Leadership Corporate Governance The Financials Additional Information