ii Deferred Tax Deferred tax is recognised using the liability method on all

Ii deferred tax deferred tax is recognised using the

This preview shows page 90 - 92 out of 153 pages.

(ii) Deferred Tax Deferred tax is recognised using the liability method, on all temporary differences between the tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is not recognised if the temporary difference arises from goodwill 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 nor taxable profit or loss. Deferred tax is measured at the tax rates that are expected to apply in the period in which the assets are realised or the liabilities are settled, based on tax rates and tax laws that have been enacted or substantially enacted by the reporting date. Deferred tax assets are recognised only to the extent that there are sufficient taxable temporary differences relating to the same taxable entity and the same taxation authority to offset or when it is probable that future taxable profits will be available against which the assets can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will be available for the assets to be utilised. Deferred tax assets relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transactions either in other comprehensive income or directly in equity and deferred tax arising from business combination is adjusted against goodwill on acquisition or the amount of any excess of the acquirer’s inter est in the net fair value of the acquirer’s identifiable assets, liabilities and contingent liabilities over the acquisition cost. (iii) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (“GST”) except: where the GST incurred in a purchase of assets or services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and receivables and payables that are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statements of financial position. The GST in Malaysia was abolished and replaced by the sales and service tax effective from 1 September 2018. NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2018
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IMPIANA HOTELS BERHAD (formerly known as Bio Osmo Berhad) (740838-A) | Annual Report 2018 (formerly known as Bio Osmo Berhad) (740838-A) 86 3. SIGNIFICANT ACCOUNTING POLICIES (continued) (g) Income Tax (continued) (iv) Sales and Services Tax Revenue, expenses and assets are recognised net of the amount of sales and services tax except:
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