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AEMULUS HOLDINGS BERHAD
A N N U A L R E P O R T 2 0 1 6
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
3.17 Goods and Services Tax
Goods and Services Tax (“GST”) is a consumption tax based on the value-added concept. GST is imposed on
goods and services at every production and distribution stage in the supply chain including importation of goods
and services, at the applicable tax rate of 6% in Malaysia and 5% in Taiwan. Input tax that a company pays on
business purchases is offset against output tax.
Revenue, expenses and assets are recognised net of GST except:
-
where the GST incurred in a purchase of asset or service is not recoverable from the authority, in which
case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and
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receivables and payables that are stated with GST inclusive.
The net GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables
in the statements of financial position.
3.18 Foreign Currency Translations
Assets and liabilities in foreign currencies at the end of the reporting period are translated into Ringgit Malaysia
(“RM”) at the rates of exchange approximating those ruling on that date. Transactions in foreign currencies during
the year are converted into RM at the rates of exchange approximating those ruling on transaction dates. Gains
and losses on foreign exchange are included in the income statement.
The incorporation of the results and financial position of the subsidiary’s foreign branch are translated into RM at
the approximate rate of exchange ruling at the end of the reporting period for assets and liabilities and at the
approximate average rate of exchange ruling on transaction dates for income and expenses. Exchange differences
due to such currency translations are taken directly to exchange translation reserve.
3.19 Segment Reporting
An operating segment is a component of the Group that engages in business activities from which it may earn
revenue and incur expenses, including revenue and expenses that relate to transactions with any of the Group’s
other components. An operating segment’s operating results are reviewed regularly by the chief operating
decision maker, who in this case are the Executive Directors of the Group, to make decisions about resources to be
allocated to the segment and assess its performance, and for which discrete financial information is available.
3.20 Share Capital and Share Premium
An equity instrument is any contract that evidences a residual interest in the assets of the Group and of the
Company after deducting all of its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs.
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in
which they are declared.
Share premium includes any premium received upon issuance of share capital. Any transaction costs associated
with the issuing of shares are deducted from share premium, net of any related income tax benefits.
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
– 30 SEPTEMBER 2016