BAKERTECHNOLOGYLIMITED
ANNUALREPORT2013
99
Notes to the
Financial Statements
for the financial year ended 31December 2013
2.
Summaryof significantaccounting policies (cont’d)
2.20
Taxes (cont’d)
(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 acquisitionof 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.
2.21
Segment reporting
For management purposes, the Group is organised into operating segments based on their products and 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 Company who regularly review the
segment results inorder to allocate resources to the segments and to assess the segment performance. Additional disclosures
on each of these segments are shown in Note 4, including the factors used to identify the reportable segments and the
measurement basis of segment information.
2.22
Share capital and share issue expenses
Proceeds from issuance of ordinary shares and warrants are recognised as share capital in equity. Incremental costs directly
attributable to the issuance of ordinary shares andwarrants are deducted against share capital.
2.23
Contingencies
A contingent liability is:
(a)
a possible obligation that arises frompast events andwhose existencewill be confirmedonly by the occurrence or non-
occurrence of one ormore uncertain future events not whollywithin the control of theGroup; or
(b)
a present obligation that arises frompast events but is not recognisedbecause:
(i)
It isnotprobable thatanoutflowof resourcesembodyingeconomicbenefitswillbe required tosettle theobligation;
or
(ii)
The amount of the obligation cannot bemeasuredwith sufficient reliability.
A contingent asset is apossibleasset that arises frompast events andwhoseexistencewill be confirmedonlyby theoccurrence
or non-occurrence of one ormore uncertain future events not whollywithin the control of theGroup.
Contingent liabilities andassets arenot recognisedon thebalance sheet of theGroup, except for contingent liabilities assumed
in a business combination that are present obligations andwhich the fair values canbe reliably determined.
