LEEKEE INDUSTRIES (M) SDN - teo seng capital berhad

TEO SENG CAPITAL BERHAD
(Incorporated In Malaysia)
Company No : 732762 - T
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2011
4. ACCOUNTING POLICIES AND STANDARDS (CONT’D)
4.2 Summary of Significant Accounting Policies (Cont’d)
(i)
Borrowing costs
Borrowing costs, directly attributable to the acquisition and construction of property,
plant and equipment are capitalised as part of the cost of those assets, until such
time as the assets are ready for their intended use or sale. Capitalisation of
borrowing costs is suspended during extended periods in which active development
is interrupted.
All other borrowing costs are recognised in profit or loss as expenses in the period in
which they incurred.
(j)
Income tax
Income tax for the year comprises current and deferred tax.
Current tax is the expected amount of income taxes payable in respect of the taxable
profit for the year and is measured using the tax rates that have been enacted or
substantively enacted at the end of the reporting period.
Deferred tax is provided in full, using the liability method, on temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in
the financial statements.
Deferred tax liabilities are recognised for all taxable temporary differences other than
those that arise from 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 or from the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of the transaction,
affects neither accounting profit nor taxable profit.
Deferred tax assets are recognised for all deductible temporary differences, unused
tax losses and unused tax credits to the extent that it is probable that future taxable
profits will be available against which the deductible temporary differences, unused
tax losses and unused tax credits can be utilised. The carrying amounts of deferred
tax assets are reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient future taxable profits will be
available to allow all or part of the deferred tax assets to be utilised.
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.
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