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BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
2. Summaryof significant accounting policies (cont’d)
2.21 Revenue (cont’d)
(a)
Contract revenue (cont’d)
The stage of completion is determined by reference to the proportion that contract costs incurred for work
performed to date bear to the estimated total contract costs.
(b)
Sales of goods
Revenue from sales of goods is recognised upon the transfer of significant risk and rewards of ownership
of the goods to the customers, usually on delivery of goods.
Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the
consideration due, associated costs or the possible return of goods.
(c)
Rendering of services
Revenue from rendering of services is recognisedby reference to the stage of completion at the end of the
reporting period. Where the contract outcome cannot bemeasured reliably, revenue is recognised to the
extent of the expenses recognised that are recoverable.
(d)
Interest income
Interest income is recognised using the effective interest method.
(e)
Dividend income
Dividend income is recognisedwhen theGroup’s right to receive payment is established.
(f)
Rental income
Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms.
The aggregate costs of incentives provided to lessees are recognisedas a reduction of rental income over
the lease term on a straight-line basis.
2. Summaryof significant accounting policies (cont’d)
2.22 Taxes
(a)
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute theamount are those that areenactedor substantively enactedat theendof the reportingperiod,
in the countries where theGroup operates and generates taxable income.
Current income taxes are recognised in the profit or loss except to the extent that the tax relates to items
recognisedoutside profit or loss, either in other comprehensive income or directly in equity. Management
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.
(b)
Deferred tax
Deferred tax is provided using the liability method on temporary differences at the balance sheet date
between the taxbases of assets and liabilities and their carryingamounts for financial reportingpurposes.
Deferred tax liabilities are recognised for all temporary differences, except:
•
Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not abusiness combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; and
•
In respect of temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be
controlledand it is probable that the temporary differenceswill not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilised except:
•
where the deferred tax asset relating to the deductible temporary difference arises from the initial
recognitionof anasset or liability ina transaction that is not abusiness combinationand, at the time
of the transaction, affects neither the accounting profit nor taxable profit or loss; and
•
in respect of deductible temporarydifferences associatedwith investments in subsidiaries, associates
and interests in joint ventures, deferred taxassets are recognisedonly to theextent that it is probable
that the temporary differences will reverse in the foreseeable future and taxable profit will be
available against which the temporary differences can be utilised.
for the financial year ended 31december 2012
for the financial year ended 31december 2012
notestothe
financialstatements
notestothe
financialstatements
