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NOTES TO THE
FINANCIAL STATEMENTS
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Taxation (Continued)
Deferred tax is recognised in respect of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for:
• temporary differences on 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;
• temporary differences related to investments in subsidiaries to the extent that it is
probable that they will not reverse in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be applied to temporary
differences when they reverse, based on the laws that have been enacted or substantively
enacted by the reporting date.
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 liabilities and assets on a net basis or their tax assets and liabilities will be realised
simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that future taxable profits will be available against
which they can be utilised. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
In the ordinary course of business, there are many transactions and calculations for which
the ultimate tax treatment is uncertain. Therefore, the Group recognises tax liabilities based
on estimates of whether additional taxes and interest will be due. These tax liabilities are
recognised when the Group believes that certain positions may not be fully sustained
upon review by tax authorities, despite the Group’s belief that its tax return positions are
supportable. The Group believes that its accruals for tax liabilities are adequate for all open tax
years based on its assessment of many factors including interpretations of tax law and prior
experience. This assessment relies on estimates and assumptions and may involve a series of
multifaceted judgements about future events. New information may become available that
causes the Group to change its judgement regarding the adequacy of existing tax liabilities.
Such changes to tax liabilities will impact tax expense in the period that such a determination
is made.
(n) Segment reporting
An operating segment is a component of the Group that engages in business activities from
which it may earn revenues and incur expenses, including revenues and expenses that relate
to transactions with any of the Group’s other components. All operating segments’ operating
results are reviewed regularly by the Group’s Chief Operating Decision Maker (CODM) to make
decisions about resources to be allocated to the segments and assess their performance and
for which discrete financial information is available.