Annual Report 2012 - IOI Group

5. SIGNIFICANT ACCOUNTING POLICIES (Continued)5.20 Income Taxes (Continued)5.20.2 Deferred tax (Continued)Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assetsagainst current tax liabilities and when the deferred income taxes relate to the same taxation authority on either:i. the same taxable entity; orii.different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or torealise the assets and settle the liabilities simultaneously, in each future period in which significant amounts ofdeferred tax liabilities or assets are expected to be settled or recovered.Deferred tax will be recognised as income or expense and included in profit or loss for the period unless the taxrelates to items that are credited or charged, in the same or a different period, directly to equity, in which case thedeferred tax will be charged or credited directly to equity.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when theasset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantivelyenacted by the end of the reporting period.5.21 Non-current Assets (or Disposal Groups) Held For SaleNon-current assets (or disposal groups) are classified as held for sale if their carrying amounts will be recovered principallythrough a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highlyprobable and the asset is available for immediate sale in its present condition subject only to terms that are usual andcustomary. Management must be committed to a plan to sell the assets which are expected to qualify for recognition as acompleted sales within one year from the date of classification. However, an extension of the period required to completethe sale does not preclude the assets (or disposal groups) from being classified as held for sale if the delay is caused byevents or circumstances beyond the control of the Group and there is sufficient evidence that the Group remains committedto its plan to sell the assets (or disposal groups).When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of thatsubsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group retainsa non-controlling interest in its former subsidiary after the sale or otherwise.Immediately before classification as held for sale, the measurement of the non-current assets (or all the assets and liabilitiesin a disposal group) is brought up-to-date in accordance with applicable FRSs. Then, on initial classification as held for sale,non-current assets or disposal groups (other than investment properties, deferred tax assets, employee benefits assets,financial assets and inventories) are measured in accordance with FRS 5 that is at the lower of carrying amount and fair valueless costs to sell. Any differences are included in profit or loss as an impairment loss.The Group measures a non-current asset (or disposal group) classified as held for distribution to owners at the lower of itscarrying amount and fair value less costs to distribute.Annual Report 2012IOI CORPORATION BERHAD 153