A N N U A L R E P O R T 2 0 1 6
86
NOTES TO THE
FINANCIAL STATEMENTS
For the Financial Year Ended 31 March 2016
2.
Summary of significant accounting policies (cont’d)
2.21
Taxes (cont’d)
(b)
Deferred tax (cont’d)
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or
the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the end of each reporting
period.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised
in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising from a
business combination is adjusted against goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets
against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
(c)
Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
-
Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case
the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
-
Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, payable to, the taxation authority is included as part of receivables or payables in the
balance sheet.
2.22
Share capital and share issue expenses
Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs directly attributable to the issuance of
ordinary shares are deducted against share capital.
