LEEKEE INDUSTRIES (M) SDN - teo seng capital berhad

TEO SENG CAPITAL BERHAD(Incorporated In Malaysia)Company No : 732762 - TNOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL PERIOD FROM 1 APRIL 2012 TO 31 DECEMBER 20124. ACCOUNTING POLICIES AND STANDARDS (CONT’D)4.2 Summary of Significant Accounting Policies (Cont’d)(i)Borrowing costsBorrowing costs, directly attributable to the acquisition and construction of property,plant and equipment are capitalised as part of the cost of those assets, until suchtime as the assets are ready for their intended use or sale. Capitalisation ofborrowing costs is suspended during the extended periods in which activedevelopment is interrupted.All other borrowing costs are recognised in profit or loss as expenses in the period inwhich they incurred.(j)Income taxIncome tax for the year comprises current and deferred tax.Current tax is the expected amount of income taxes payable in respect of the taxableprofit for the year and is measured using the tax rates that have been enacted orsubstantively enacted at the end of the reporting period.Deferred tax is provided in full, using the liability method, on temporary differencesarising between the tax bases of assets and liabilities and their carrying amounts inthe financial statements.Deferred tax liabilities are recognised for all taxable temporary differences other thanthose that arise from goodwill or excess of the acquirer’s interest in the net fair valueof the acquiree’s identifiable assets, liabilities and contingent liabilities over thebusiness combination costs or from the initial recognition of an asset or liability in atransaction 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, unusedtax losses and unused tax credits to the extent that it is probable that future taxableprofits will be available against which the deductible temporary differences, unusedtax losses and unused tax credits can be utilised. The carrying amounts of deferredtax assets are reviewed at the end of each reporting period and reduced to theextent that it is no longer probable that sufficient future taxable profits will beavailable 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 toapply in the period when the asset is realised or the liability is settled, based on thetax rates that have been enacted or substantively enacted at the end of the reportingperiod.Page 36