Bursa Malaysia Annual Report 2015

FINANCIAL REPORTS

134

Bursa Malaysia •

Annual Report 2015

NOTES TO THE

FINANCIAL STATEMENTS

31 DECEMBER 2015

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 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 tax 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 and unused capital allowances 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).