NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
142
THE STRAITS TRADING COMPANY LIMITED
42.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)
(b)
Judgements (cont’d)
(i)
Income taxes
(cont’d)
The carrying amounts are as follows:
Group
2015
2014
$’000
$’000
Income tax receivables
3,526
1,368
Income tax payable
2,083
1,682
Deferred tax assets
1,599
1,550
Deferred tax liabilities
5,654
6,051
(ii)
Impairment of investment securities
The Group reviews its equity investments classified as available-for-sale investments at each reporting date
to assess whether they are impaired. The Group records impairment charges on available-for-sale equity
investments when there has been a significant or prolonged decline in the fair value below their cost.
The determination of what is significant or prolonged requires judgement. In making this judgement, the
Group evaluates, among other factors, historical share price movements and the duration and extent to
which the fair value of an investment is less than its cost.
43.
FAIR VALUE OF ASSETS AND LIABILITIES
A.
Fair value hierarchy
The Group categories fair value measurements using a fair value hierarchy that is dependent on the valuation inputs
used as follows:
Level 1 – Quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at
the measurement date,
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly, and
Level 3 – Unobservable inputs for the asset or liability.
Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same level
of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
