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4. Significant Accounting Estimates and Judgements and Key Sources of Estimation Uncertainty (cont’d.)
(b) Impairment of non-financial assets (cont’d.)
Recoverable amounts of assets are based on management’s estimates and assumptions of the net realisable value, cash
flows arising from the future operating performance and revenue-generating capacity of the assets and CGUs, and future
market conditions. Changes in circumstances may lead to changes in estimates and assumptions, and may change the
recoverable amounts of assets and impairment losses needed.
(c) Impairment of loans and receivables
The Group assesses at each reporting date whether there is any objective evidence that a financial asset is impaired.
To determine whether there is objective evidence of impairment, the Group considers factors such as the probability of
insolvency or significant financial difficulties of the debtor and default or significant reduction in collection rates.
Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on
historical loss experience for assets with similar credit risk characteristics. The carrying amounts of the Group’s trade and
other receivables at the reporting date are disclosed in Note 15. If the present value of estimated future cash flows varies
by 5.0% from management’s estimates, the Group’s allowance for impairment will cause either a 0.1% (2012: 0.1%)
increase or 0.1% (2012: 0.2%) decrease respectively in the Group’s profit for the year.
(d) Deferred tax assets and liabilities
Deferred tax implications arising from the changes in corporate income tax rates are measured with reference to the
estimated realisation and settlement of temporary differences in the future periods in which the tax rates are expected
to apply, based on the tax rates enacted or substantively enacted at the reporting date. While management’s estimates
on the realisation and settlement of temporary differences are based on the available information at the reporting date,
changes in business strategy, future operating performance and other factors could potentially impact on the actual timing
and amount of temporary differences realised and settled. Any difference between the actual amount and the estimated
amount would be recognised in profit and loss in the period in which actual realisation and settlement occurs.
5. Revenue
Group
Company
2013
2012
2013
2012
RM’000
RM’000
RM’000
RM’000
Telecommunication revenue
6,733,411 6,360,913
–
–
Dividend income from a subsidiary
–
– 1,262,500 1,890,000
6,733,411 6,360,913 1,262,500 1,890,000
NOTES TO THE FINANCIAL STATEMENTS
31 December 2013
DiGi.COM BERHAD (425190-X)
ANNUAL REPORT 2013
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