104
105
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
2. Summaryof significant accounting policies (cont’d)
2.22 Taxes (cont’d)
(b)
Deferred tax (cont’d)
The carryingamount of deferred tax asset is reviewedat the endof each reportingperiodand reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at the end of each
reporting period and are recognised to the extent that it has become probable that future taxable profit
will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when theasset is realisedor the liability is settled, basedon tax rates and tax laws that havebeenenacted
or substantively enacted at the end of each reporting period.
Deferred tax relating to items recognisedoutsideprofit or loss is recognisedoutsideprofit or loss. Deferred
tax items are recognised in correlation to the underlying transaction either in other comprehensive income
or directly in equity anddeferred tax arising fromabusiness combination is adjustedagainst goodwill on
acquisition.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate
recognitionat thatdate,wouldbe recognisedsubsequently ifnew informationabout factsandcircumstances
changed. Theadjustment would either be treatedas a reduction togoodwill (as longas it does not exceed
goodwill) if it incurred during themeasurement period or in profit or loss.
(c)
Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
•
Where the sales tax incurredonapurchaseof 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 statedwith the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the balance sheet.
2. Summaryof significant accounting policies (cont’d)
2.23 Segment reporting
Formanagement purposes, theGroup isorganised intooperating segmentsbasedon their productsand services
which are independently managed by the respective segment managers responsible for the performance of
the respective segments under their charge. The segment managers report directly to the management of the
Companywho regularly review the segment results in order to allocate resources to the segments and to assess
the segment performance. Additional disclosures on each of these segments are shown inNote 4, including the
factors used to identify the reportable segments and themeasurement basis of segment information.
2.24 Share capital and share issue expenses
Proceeds from issuance of ordinary shares andwarrants are recognised as share capital in equity. Incremental
costs directly attributable to the issuance of ordinary shares andwarrants are deducted against share capital.
2.25 Contingencies
A contingent liability is:
(a) a possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Group; or
(b) a present obligation that arises from past events but is not recognised because:
(i)
It is not probable that anoutflowof resources embodying economic benefitswill be required to settle
the obligation; or
(ii) The amount of the obligation cannot bemeasuredwith sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Group.
Contingent liabilities and assets are not recognised on the balance sheet of the Group, except for contingent
liabilities assumed in a business combination that are present obligations and which the fair values can be
reliably determined.
for the financial year ended 31december 2012
for the financial year ended 31december 2012
notestothe
financialstatements
notestothe
financialstatements
