Page 94 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
92
3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Taxation (Continued)
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 determining the amount of current and deferred tax, the Group takes into account the
impact of uncertain tax positions and whether additional taxes and interest may be due.
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 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) Earnings per unit
The Group presents basic and diluted earnings per unit data for its units. Basic earnings per
unit is calculated by dividing the profit or loss attributable to unitholders of the Trust by
the weighted average number of units outstanding during the year, adjusted for own units
held. Diluted earnings per share is determined by adjusting the profit or loss attributable
to unitholders and the weighted average number of units outstanding, adjusted for own
units held, for the effects of all dilutive potential units, which comprise convertible debt
securities and unit options granted.