Page 160 - Mono Technology Public Company Limited : Annual Report 2014 EN

Land and equipment/Depreciation

In determining depreciation of equipment, the management is required to make estimates of the useful
lives and residual values of equipment and to review estimate useful lives and residual values when there
are any changes.

In addition, the management is required to review equipment for impairment on a periodical basis and
record impairment losses when it is determined that their recoverable amount is lower than the carrying
amount. This requires judgements regarding forecast of future revenues and expenses relating to the
assets subject to the review.

Intangible assets

The initial recognition and measurement of intangible assets, and subsequent impairment testing, require
management to make estimates of cash flows to be generated by the asset or the cash generating

units and to choose a suitable discount rate in order to calculate the present value of those cash flows.

Deferred tax assets
Deferred tax assets are recognised for deductible temporary differences and unused tax losses to the extent
that it is probable that taxable profit will be available against which the temporary differences and losses

can be utilised. Significant management judgement is required to determine the amount of deferred tax
assets that can be recognised, based upon the likely timing and level of estimate future taxable profits.

Post-employment benefits under defined benefit plans

The obligation under the defined benefit plan is determined based on actuarial techniques.
Such determination is made based on various assumptions, including discount rate, future salary
increase rate, mortality rate and staff turnover rate.

6. Related party transactions

The followings are relationships with enterprises and individuals that control, or are controlled by, the
Company and its subsidiaries, whether directly or indirectly, or which are under common control with the

Company and its subsidiaries.

Name of entities Nature of relationship

Subsidiary companies More than 50% shareholding by the Company

Jasmine Group Common major shareholders and directors

Toyota PS Enterprise Co., Ltd. Common directors
Green Star Environment Co., Ltd. Common directors

Media Shaker Co., Ltd. Common directors

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