Page 79 - Annual Report 2021

(e) income taxes
There are certain transactions and computations for which the ultimate tax determination may be different
from the initial estimate. The Group recognises tax liabilities based on its understanding of the prevailing tax
laws and estimates of whether such taxes will be due in the ordinary course of business. Where the final
outcome of these matters is different from the amounts that were initially recognised, such difference will
impact the income tax expense and deferred tax balances in the period in which such determination is made.
The carrying amount of current tax liabilities as at the reporting date is disclosed in Note 24 to the financial
statement.

Critical Judgements Made in Applying Accounting Policies

Management believes that there are no instances of application of critical judgement in applying the Group’s
accounting policies which will have a significant effect on the amounts recognised in the financial statements.

5.2 BASIS OF CONSOLIDATION

The consolidated financial statements include the financial statements of the Company and its subsidiaries made
up to the end of the reporting period.

Subsidiaries are entities controlled by the Group. Control is the power to govern the financial and operating
policies of an entity so as to obtain benefits from its activities.

Subsidiaries are consolidated from the date on which control is transferred to the Group up to the effective date on
which control ceases, as appropriate.

Intragroup transactions, balances, income and expenses are eliminated on consolidation. Where necessary,
adjustments are made to the financial statements of subsidiaries to ensure consistency of accounting policies with
those of the Group.

(a) Business combinations
Acquisitions of businesses are accounted for using the purchase method. Under the purchase method, the
cost of a business combination is measured at the aggregate of the fair values at the date of exchange, of
assets given, liabilities incurred or assumed, and equity instruments issued plus any costs directly
attributable to the business combination.

If an associate becomes a subsidiary, the Group remeasures its previously held equity interests to fair value
and any corresponding gain or loss is recognised in profit or loss. The remeasured carrying amount forms
part of the cost of business combination.

Non-controlling interests in the acquiree is measured at the non-controlling interest’s proportionate share of
the acquiree’s recognised identifiable net assets at the date of acquisition.

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