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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013
MTQ Corporat ion Limi ted Annual Repor t 2012/13 45
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3 Standards issued but not yet effective (cont’d)
Except for the Amendments to FRS 1 and FRS 112, the directors expect that the adoption of the other standards and
interpretations above will have no material impact on the financial statements in the period of initial application. The nature of
the impending changes in accounting policy on adoption of the Amendments to FRS 1 are described below.
Amendments to FRS 1 Presentation of Items of Other Comprehensive Income
The Amendments to FRS 1 Presentation of Items of Other Comprehensive Income (OCI) is effective for financial periods
beginning on or after 1 July 2012.
The Amendments to FRS 1 changes the grouping of items presented in OCI. Items that could be reclassified to profit or loss
at a future point in time would be presented separately from items which will never be reclassified. As the Amendments only
affect the presentations of items that are already recognised in OCI, the Group does not expect any impact on its financial
position or performance upon adoption of this standard.
FRS 112 Disclosure of Interests in Other Entities
FRS 112 Disclosure of Interests in Other Entities is effective for financial periods beginning on or after 1 January 2014.
FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities and other
off balance sheet vehicles. FRS 112 requires an entity to disclose information that helps users of its financial statements to
evaluate the nature and risks associated with its interests in other entities and the effects of those interests on its financial
statements. As this is a disclosure standard, it will have no impact to the financial position and financial performance of the
Group when implemented in financial year 2015.
2.4 Significant accounting judgments and estimates
The preparation of the Group’s consolidated financial 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 significant effect on the amounts recognised in the consolidated
financial statements:
Income taxes
The Group has exposure to income taxes in several jurisdictions. Significant 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 final 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.
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will
be available against which the losses can be utilised. Significant management judgment is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits
together with future tax planning strategies.