Page 136 - Mono Technology Public Company Limited : Annual Report 2013

Leasehold improvement and equipment/Depreciation
In determining depreciation of leasehold improvement and equipment, the management is required to

make estimates of the useful lives and residual values of leasehold improvement and equipment and
to review estimate useful lives and residual values when there are any changes.

In addition, the management is required to review leasehold improvement and 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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