Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 127

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 19
Chunk 127
---
 using the liability method, providing for
temporary differences between the carrying amounts of assets and liabilities in the statement of financial position and their tax bases.
Deferred tax is not recognized for the temporary differences arising from the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax
rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively
enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset
if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same
tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax assets and liabilities on
a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognized to the extent that it is probable
that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed
at the end of each reporting period and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Impairment of assets

Goodwill is not subject to amortization and is
tested annually for impairment or more frequently if events or changes in circumstances indicate it might be impaired. Other assets are
tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognized in profit or loss for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs of disposal and value in use and is calculated with reference to future
discounted cash flows that the asset is expected to generate when considered as part of a cash-generating unit (“ CGU”). Assets
other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
If an impairment subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount,
but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment charge
been recognized for the asset in prior years.

Cash and bank balances

For the purposes of presentation in the consolidated
statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with financial institutions