NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES
Notes 18 and 26 contain information about the assumptions and their risk factors relating to defined benefit retirement obligation and financial instruments. Other key sources of estimation uncertainty and critical accounting judgements in applying the Group's accounting policies are as follows:
(a)
Valuation of investment properties
3
(b)
In determining the fair value of the investment properties, the Group has considered information from different sources, including a valuation performed by an independent firm of professional valuers after taking into consideration the net rental income allowing for reversionary income potential, and other available market survey
reports.
The assumptions adopted in the property valuations are based on the market conditions existing at the end of the reporting period, with reference to expected future market rents and the appropriate capitalisation rate.
Recognition of deferred tax assets
At 31 December 2017, the Group had recognised deferred tax assets in relation to the unused tax losses amounting to approximately HK$15,554,000 (2016: HK$ 15,200,000). The realisability of the deferred tax assets mainly depends on whether it is probable that future taxable profits or taxable temporary differences will be available against which related tax benefits under the deferred tax assets can be utilised. In cases where the actual future taxable profits or taxable temporary differences generated are less than expected, a reversal of deferred tax assets may arise, which will be recognised in profit or loss for the period in which such a reversal takes place.
SEGMENT INFORMATION
The operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.
In a manner consistent with the way in which information is reported internally to the Group's most senior executive management for the purposes of resource allocation and performance assessment, the Group has presented the following five reportable segments.
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Hong Kong Ferry (Holdings) Company Limited Annual Report 2017
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