ANNUAL REPORT 2014
67
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
For the financial year ended 31 December 2014
2.
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(l)
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end
of financial year which are unpaid. They are classified as current liabilities if payment is due within one year
or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-
current liabilities.
Trade and other payables are initially recognised at fair value, and subsequently measured at amortised cost,
using the effective interest method.
(m) Income taxes
Current income tax for current and prior periods are recognised at the amounts expected to be paid to or
recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period.
Deferred income tax are recognised for all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements except when the deferred income tax arise
from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination
and at the time of the transaction, affects neither accounting nor taxable profit or loss.
Deferred income tax liability is recognised on temporary differences arising on investments in subsidiaries and
associated companies, except where the timing of the reversal of the temporary difference can be controlled and
it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available
against which the deductible temporary differences and tax losses can be utilised.
Deferred income tax is measured:
(i)
at the tax rates that are expected to apply when the related deferred income tax asset is realised or
the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting period; and
(ii) based on the tax consequence that would follow from the manner in which the Group expects, at the
end of the reporting period, to recover or settle the carrying amounts of its assets and liabilities, except
for investment properties. Investment property measured at fair value is presumed to be recovered
entirely through sale.
Current and deferred income taxes are recognised as income or expenses in profit or loss for the period, except
to the extent that the tax arises from a business combination or a transaction, which is recognised directly in
equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.
The Group accounts for investment tax credits (for example, productivity and innovative credit) similar to
accounting for other tax credits where deferred tax asset is recognised for unused tax credits to the extent that
it is probable that future taxable profit will be available against which the unused tax credit can be utilised.
