Page 44 - ar2012

MTQ Corporation Limited
Financial Report / 42
NOTES TO THE
FINANCIAL STATEMENTS
31 MARCH 2012
2. Summary of significant accounting policies (CONT’D)
2.3 Standards issued but not yet effective
The Group has not adopted the following standards and interpretations that have been issued but not yet effective:
Effective for annual periods
Description beginning on or after
Amendments to FRS 107 Disclosures – Transfers of Financial Assets 1 July 2011
Amendments to FRS 12 Deferred Tax: Recovery of Underlying Assets 1 January 2012
Amendments to FRS 1 Presentation of Items of Other Comprehensive Income 1 July 2012
FRS 112 Disclosure of Interests in Other Entities 1 January 2013
FRS 113 Fair Value Measurements 1 January 2013
Amendments to FRS 107 Disclosures – Offsetting Financial Assets and Financial Liabilities 1 January 2013
Amendments to FRS 32 Offsetting Financial Assets and Financial Liabilities 1 January 2014
The Directors expect that the adoption of the standards and interpretations above will have no material impact on the fnancial
statements in the period of initial application.
2.4 Signifcant accounting judgments and estimates
The preparation of the Group’s consolidated fnancial statements requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent
liabilities at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in
outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future periods.
(a) Judgments made in applying accounting policies
In the process of applying the Group’s accounting policies, management has made the following judgments, apart from
those involving estimations, which has the most signifcant effect on the amounts recognised in the consolidated fnancial
statements:
Impairment of available-for-sale investments
The Group records impairment charges on available-for-sale equity investments when there has been a signifcant or
prolonged decline in the fair value below their cost. The determination of what is “signifcant” or “prolonged” requires
judgment. In making this judgment, the Group evaluates, among other factors, underlying net asset value, historical share
price movements and the duration and extent to which the fair value of an investment is less than its cost.
For the fnancial year ended 31 March 2012, no impairment loss was recognised for available-for-sale assets.
Income taxes
The Group has exposure to income taxes in several jurisdictions. Signifcant judgement is involved in determining
the Group’s provision for income taxes. There are certain transactions and computations for which the ultimate tax
determination is uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues
based on estimates of whether additional taxes will be due. Where the fnal tax outcome of these matters is different from
the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the
period in which such determination is made.
(In Singapore dollars)