100
Baker Technology LimitedAnnual Report 2014
2.
Summaryof significant accountingpolicies (cont’d)
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 theCompanywho regularly review the segment results inorder toallocate resources to the
segments and to assess the segment performance. Additional disclosures on each of these segments are
shown inNote4, including the factors used to identify the reportable segments and themeasurement basis
of segment information.
2.22
Share capital and share issueexpenses
Proceeds from issuanceofordinarysharesandwarrantsare recognisedassharecapital inequity. Incremental
costsdirectlyattributable to the issuanceofordinarysharesandwarrantsaredeductedagainst sharecapital.
2.23
Contingencies
A contingent liability is:
(a)
apossibleobligation that arises frompasteventsandwhoseexistencewill beconfirmedonlyby the
occurrenceor non-occurrenceof oneormoreuncertain futureevents not whollywithin the control
of theGroup; or
(b)
apresent obligation that arises frompast eventsbut isnot recognisedbecause:
(i)
it is not probable that an outflow of resources embodying economic benefits will be
required to settle theobligation; or
(ii)
theamount of theobligation cannot bemeasuredwith sufficient reliability.
Acontingentasset isapossibleasset thatarises frompasteventsandwhoseexistencewillbeconfirmedonly
by theoccurrenceor non-occurrenceof oneormoreuncertain futureevents notwhollywithin the control of
theGroup.
Contingent liabilitiesandassetsarenot recognisedon thebalance sheetof theGroup, except for contingent
liabilities assumed in a business combination that are present obligations andwhich the fair values can be
reliablydetermined.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
