51
/ MTQ CORPORATION LIMITED /
ANNUAL REPORT
2014/2015
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.4 Significant accounting estimates and judgments (cont’d)
Income taxes (cont’d)
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.
The carrying amounts of the Group’s deferred tax assets, deferred tax liabilities and provision for taxation
as at 31 March 2015 amounted to $6,947,000 (2014: $4,703,000), $2,466,000 (2014: $2,767,000) and
$7,269,000 (2014: $4,808,000) respectively. The carrying amounts of the Company’s deferred tax liabilities
and provision for taxation as at 31 March 2015 amounted to $93,000 (2014: $106,000) and $809,000 (2014:
$168,000) respectively.
(b)
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the end of
the reporting period are discussed below. The group based its assumptions and estimates on parameters
available when the financial statements were prepared. Existing circumstances and assumptions about
future developments, however, may change due to market changes or circumstances arising beyond the
control of the Group. Such changes are reflected in the assumptions when they occur.
Impairment of goodwill
The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation
of the value in use of the cash-generating units to which the goodwill is allocated. Estimating the value in
use requires the Group to make an estimate of the expected future cash flows from the cash-generating
units and to choose a suitable discount rate in order to calculate the present value of those cash flows. The
key assumptions applied in the determination of the value in use including sensitivity analysis are disclosed
in Note 9.
