Page 86 - Annual Report 2021

Overview Leadership Message Business Segment Moving Forward Our Resources Working for a Corporate Financial
Review Plan Better Tomorrow Governance statements

nOTES TO THE FInanCIaL STaTEmEnTS

5.15 LEASED ASSETS

Operating lease
All leases that do not transfer substantially to the Group all the risks and rewards incidental to ownership are
classified as operating leases and, the leased assets are not recognised on the statement of financial position of
the Group and of the Company.

Payments made under operating leases are recognised as an expense in the profit or loss on a straight-line
method over the term of the lease.

5.16 INCOME TAXES

(a) current tax
Current tax assets and liabilities are expected amount of income tax recoverable or payable to the taxation
authorities.

Current taxes are measured using tax rates and tax laws that have been enacted or substantively enacted at
the end of the reporting period and are recognised in profit or loss except to the extent that the tax relates to
items recognised outside profit or loss (either in other comprehensive income or directly in equity).

(b) Deferred tax
Deferred tax are recognised using the liability method for all temporary differences other than those that
arise from goodwill or from the initial recognition of an asset or liability in a transaction which is not a
business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when
the asset is realised or the liability is settled, based on the tax rates that have been enacted or substantively
enacted at the end of the reporting period.

Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused
tax credits to the extent that it is probable that future taxable profits will be available against which the
deductible temporary differences, unused tax losses and unused tax credits can be utilised. The carrying
amounts of deferred tax assets recognised are reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that the related tax benefits will be realised.

Current and deferred tax items are recognised in correlation to the underlying transactions either in profit or loss,
other comprehensive income or directly in equity. Deferred tax arising from a business combination is adjusted
against goodwill or negative goodwill.

Current tax assets and liabilities or deferred tax assets and liabilities are offset when there is a legally enforceable
right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same
taxable entity (or on different tax entities but they intend to settle current tax assets and liabilities on a net basis)
and the same taxation authority.

86 UM Holdings Group