Page 212 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS

for the financial year ended 31 december 2020 (continUed)

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.25 Income tax (continued)
deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,
and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but they intend to settle current tax assets and liabilities on a net basis or their tax assets and liabilities will be realised
simultaneously.
inteGrated annUal rePort 2020 2.26 Zakat
a deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which
the temporary difference can be utilised. deferred tax assets are reviewed at the end of each reporting period and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.

this represents business zakat. it is an obligatory amount payable by the Group and the company to comply with the
principles of Shariah.

2.27 Employee benefits
206
Short-term employee benefits
Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are
measured on an undiscounted basis and are expensed as the related service is provided.
bimb holdinGS berhad 199701008362 (423858-X) provided by the employee and the obligation can be estimated reliably.
a liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the
Group and the company has a present legal or constructive obligation to pay this amount as a result of past service

State plans
the Group’s and the company contribution to the employees Provident fund is charged to the profit or loss in the year
to which they relate. once the contributions have been paid, the Group and the company have no further payment
obligations.
Defined benefit plans
the Group’s net obligation in respect of defined benefit plan is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.

the calculation of the defined obligations is performed annually by a qualified actuary using the projected unit credit
method. When the calculation results in a potential asset for the Group, the recognised asset is limited to the present
value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions
to the plan. to calculate the present value of economic benefits, consideration is given to any applicable minimum
funding requirements.
remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other
comprehensive income. the Group determines the net interest expense or income on the net defined liability or asset for
the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual
period to the then net defined benefit liability or asset, taking into account any changes in the net defined benefit liability
or asset during the period as a result of contributions and benefit payments.

net profit expense and other expenses relating to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised immediately in profit or loss. the Group recognises gains and losses
on the settlement of a defined benefit plan when the settlement occurs.