For the financial year ended 31 December 2015
68
HAW PAR CORPORATION LIMITED
2. SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(m) Income taxes
(continued)
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.
(n) Employee benefits
(1) Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions
into separate entities such as Central Provident Fund on a mandatory, contractual or voluntary basis.
The Group has no further payment obligations once the contributions have been paid.
(2) Share-based compensation
The Group operates an equity-settled, share-based compensation plan. The fair value of the employee
services received in exchange for the grant of the options is recognised as an expense in profit or loss with
a corresponding increase in share option reserve within equity over the vesting period. The total amount to
be recognised over the vesting period is determined by reference to the fair value of the options granted
on the date of grant. Non-market vesting conditions are included in the estimation of the number of shares
under options that are expected to become exercisable on vesting date. At the end of each reporting period,
the Group revises its estimates of the number of shares under options that are expected to become
exercisable on vesting date and recognises the impact of the revision of estimates in profit or loss, with
a corresponding adjustment to the share option reserve over the remaining vesting period.
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
