NOTES TO FINANCIAL STATEMENTS 31 December 2025 3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (cont’d) (i) Income taxes – deferred tax asset and liabilities The Group is subject to income taxes in Singapore and Indonesia. In determining the income tax liabilities, management is required to estimate the amount of capital allowances and deductibility of certain expense in each jurisdiction. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the year in which such determination is made. Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management estimate is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. The carrying amounts of the Group’s and the Company’s current income tax payable, prepaid income tax and deferred tax provision are disclosed in the statement of financial position, Note 8 and Note 25 to the financial statements, respectively. (j) Impairment of investments in subsidiaries and associates, and amounts due from subsidiaries Management has carried out a review of the recoverable amount of the investments in subsidiaries and associates and the amounts due from subsidiaries, having regard to the existing performance of the relevant subsidiaries and associates and the carrying value of the net tangible assets in these subsidiaries. Management has estimated the recoverable amount based on the higher of value in use and fair value less costs of disposal. The fair value less costs of disposal is determined by reference to the estimated realisable values of the net tangible assets of the subsidiaries and associates. As at 31 December 2025, allowance for impairment on investment in subsidiaries amounted to US$Nil (2024 : US$7,131,486). In 2025, there was a reversal of allowance for impairment on investment in subsidiaries of US$7,131,486 following the disposal of PT Sumber Bara Jaya on 14 July 2025 (Note 42). In 2024, there was no impairment charge or reversal for investment in subsidiaries. The carrying amounts of the Company’s investments in subsidiaries and associates and amounts due from subsidiaries are disclosed in Notes 11, 12 and 8 to the financial statements respectively. (k) Purchase Price Allocation (“PPA”) In 2024, the Group engaged an independent qualified external valuer to perform a PPA exercise in relation to the step acquisition of MBJ. The PPA exercise required a significant amount of management estimation, particularly in relation to the identification of the acquired assets and liabilities as well as the determination of the respective fair values. The Group’s disclosure of the abovementioned is set out in Note 41. 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT (a) Categories of financial instruments The following table sets out the financial instruments as at the end of the reporting period: (b) Financial instruments subject to offsetting, enforceable master netting arrangements and similar agreements The Group and Company do not have any financial instruments which are subjected to offsetting, enforceable master netting arrangements or similar netting agreements. Group Company 2025 2024 2025 2024 US$ US$ US$ US$ Financial assets At amortised cost (including cash and bank balances) 212,084,716 193,876,537 142,717,115 47,218,350 At fair value through profit or loss 4,759,182 10,650,481 - - Financial liabilities At amortised cost 435,968,559 330,183,187 147,086,273 47,552,044 Lease liabilities 139,905 5,827,114 - - 77 GEO ENERGY | ANNUAL REPORT 2025
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