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Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
116
2. Significant accounting policies (cont’d.)
2.5 Significant accounting judgements and estimates (cont’d.)
Key sources of estimation uncertainty (cont’d.)
(d) Depreciation/amortisation of system hardware and software
The cost of system hardware and software is depreciated and amortised on a straight-line basis over the assets’ useful lives. Management estimates
the useful lives of these assets to be between three to ten years. Technological advancements could impact the useful lives and the residual values of
these assets, therefore future depreciation and amortisation charges could be revised. The total carrying amounts of computer hardware and software
as at the financial year end are disclosed in Notes 12 and 13 respectively.
(e) Deferred tax assets
Deferred tax assets are recognised for all unutilised tax losses and unused capital allowances to the extent that it is probable that taxable profit will be
available against which the losses and capital allowances can be utilised. Significant management judgement is required to determine the amounts of
deferred tax assets that can be recognised, based on the likely timing and level of future taxable profits together with future tax planning strategies.
The unutilised tax losses of the Group as at the financial year end are disclosed in Note 18.
(f) Defined benefit plan
The cost of the defined benefit plan and the present value of the defined benefit obligation is determined using actuarial valuations. The actuarial
valuation involves making assumptions about discount rates, expected rate of salary increases and mortality rates. All assumptions are reviewed at
each financial year end.
In determining the appropriate discount rate, the valuation is based on market yield of high quality corporate bonds with AA rating and above with
terms similar to the terms of the liabilities.
(g) Share grant plan
The Group and the Company measure the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at
the dates which they are granted. In estimating the fair value of the share-based payment transactions, it requires the determination of the appropriate
valuation model and the inputs (for example, expected volatility of the share price and/or dividend yield) to the valuation model. The key assumptions
are disclosed in Note 28(b).